Posted on 07 Nov 2022
ArcelorMittal is preparing to idle one blast furnace at its coil production site in Fos-sur-Mer, in the south of France, the company confirms.
The production curb is the result of the continued reduced consumption of coils in the European market and the impact of high energy costs. The steelmaker is witnessing a significant demand debacle in Europe, while increasing coils imports from third countries at cheaper than domestic prices are eroding market share. In a note sent to Kallanish it says that starting from December, partial activity measures at Fos will be put in place “to adapt the working hours of part of the staff, up to a maximum of one day per week.” The company is activating the government’s temporary layoff scheme, Kallanish notes.
Production activity at the site will resume when market conditions improve, says CEO of ArcelorMittal Méditerranée Bruno Ribo. He adds that the plant’s order forecasts are down for the end of 2022 and the beginning of 2023.
In September ArcelorMittal announced it would adapt its workforce in France to the current reduced demand, in order to minimise the impact of the economic crisis. The company is reducing its use of temporary workers and contractors where possible, encouraging employees to take early leave, and implementing partial activity due to persistently weak demand for steel in its French and European markets, in particular the automotive and industrial sectors.
The Fos site has two blast furnaces and employs 2,500 workers.
Source:Kallanish
