ArcelorMittal to Shut Down Two Steel Plants in France

ArcelorMittal, the world’s second-largest steelmaker, has announced plans to close two steel plants in northern France, a move that will affect over 130 workers. The closures are attributed to ongoing economic difficulties and a significant decline in demand, particularly from the company’s industrial and automotive clients. Union representatives confirmed the announcement on Monday, with production expected to cease by June. The layoffs are set to begin as early as April, with the plants located near Reims and Denain employing 112 and 24 workers, respectively.

The company has cited a sharp drop in demand for steel from its industrial and automotive sectors as the primary reason behind the closure. These sectors have faced significant challenges in recent months, including reduced orders and a shift in manufacturing priorities. The decision comes at a time when the European steel industry as a whole is struggling to maintain its competitiveness globally, as it faces economic pressures, rising costs, and increasing competition from countries with more affordable production environments. The closures are not isolated incidents, as other sectors in France and across Europe are also witnessing similar challenges.

In response to the announcement, nearly 100 workers gathered outside the Reims plant on Monday to protest the shutdown. The workers voiced their opposition to the closures and called on the government to take action to prevent further job losses in the region. Demonstrations are expected to continue, with further protests planned for Tuesday. The unions involved are demanding that authorities intervene and ensure that the workers' interests are protected, highlighting the urgent need for solutions to support local industry and employment.

ArcelorMittal has acknowledged the difficult decision but has also called on the European Union to implement stronger measures to protect the competitiveness of European steelmakers. The company has stressed that these closures are not merely the result of market shifts but are also due to the broader challenges facing the steel industry, including regulatory issues, rising energy costs, and competition from international producers with lower operating costs. ArcelorMittal has emphasized the need for policies that will foster growth and sustainability within the domestic steel sector, urging the European Union to focus on long-term support for its manufacturing industries.

The closure of these two plants is part of a wider trend of economic difficulties impacting manufacturing industries across Europe. In November, Michelin, one of the largest tyre manufacturers in the world, announced plans to close two of its French facilities by 2026, resulting in the loss of more than 1,250 jobs. These closures, like ArcelorMittal’s, highlight the struggles faced by traditional manufacturing sectors in France, which are grappling with both economic challenges and shifting market demands.

ArcelorMittal’s decision also underscores the growing pressures on manufacturers across Europe, as they navigate a rapidly changing global market. Rising global competition, along with the shift toward digitalization, automation, and the green energy transition, is forcing companies to reassess their operations. For the steel industry, this often means scaling back or closing plants that are no longer economically viable in the current market environment. As Europe continues to deal with these challenges, it is possible that more closures and job losses will follow in the steel and related industries, affecting thousands of workers and their communities.