Posted on 05 Nov 2025
ArcelorMittal Belgium is not yet ready to carry out what would be the largest climate investment ever in the country, CEO Frederik Van De Velde said on Tuesday during a hearing in the federal parliament. According to him, the company remains committed to greening its Ghent site, but current market conditions make the project unfeasible.
The project, announced in 2021, involves a complete switch from traditional blast furnaces to a low-carbon process using direct reduced iron (DRI) and electric arc furnaces. The investment of about 2 billion euros should sharply reduce CO2 emissions in Belgium.
The company initially intended its Ghent site to take the lead. However, its site in Dunkirk later became the preferred location for investment, thanks to France's lower electricity prices. Ultimately, CEO Aditya Mittal decided to temporarily pause all major European climate investments, prompting political concern in both Belgium and France.
On Tuesday, Van De Velde said that while ArcelorMittal remains committed to net zero emissions by 2050, it is currently unable to make the investments that will realise that ambition. "Investing now would result in a negative return, given the current market," said the CEO of ArcelorMittal Belgium. "We are sticking to our plan, but will implement it at the right time."
The CEO also pointed out that Europe cannot expect companies to invest billions in decarbonisation while paying taxes competitors elsewhere do not face. "Customers today are not willing to pay more for low-carbon steel. Without a European commitment to reduce the carbon intensity of finished products, demand remains limited."
Flemish, federal and European authorities had pledged financial support for the project, Van De Velde made clear that ArcelorMittal will not use any subsidies for projects that are not implemented. "There has to be a real business case, otherwise there is no point in using that support."
Despite the delays, the 5,000 direct and 30,000 indirect jobs in Belgium are not at risk, Van De Velde assured. "We want to maintain our presence in Belgium and in Europe. Some support services will be delocalised to India, but the impact on Belgian employment will be limited."
Source:belganewsagency.eu
