ArcelorMittal Liege announces intention to permanently close coke plant and six finishing lines

Thu Jan 24, 2013 6:20am EST

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Luxembourg, Thursday 24th January - 12:00 CET  - ArcelorMittal Liege today with regret informed
the local works council of its intention to permanently close a number of additional assets due to
a further weakening of the European economy and the resultant low demand for its products.

On 14th October 2011, ArcelorMittal Liege announced its intention to permanently idle the liquid
phase due to structural over-capacity in Northern Europe.  It was envisaged that in the future
Liege would focus on its downstream activities, operating five core lines and seven flexible
lines.

Under the flexible model, which was rejected by unions, these lines would have operated at between
0 and 100% depending on market demand.  Regrettably, since October 2011, the economic outlook has
further deteriorated.  Demand for steel in Europe dropped by a further 8 - 9% in 2012 and is now
29% below pre-crisis levels.  A number of key customers in the automotive sector have announced
major restructuring projects at their plants.  As a result there is insufficient demand to support
the running of these flexible facilities and no improvement is seen over the medium term. 

Despite the closure of the blast furnaces, the Liege facility reported an EBIT loss of more than
EUR200million for the 9 first months of 2012 and no improvement is foreseen in 2013 due to the
continued weakness of the European market.  This is unsustainable on an on-going basis. 

The company is therefore proposing that in order to respond to these structural market changes and
further adapt to the reality of demand in Europe, the following six flexible lines need to be
closed:

-          The hot strip mill in Chertal
-          One of the two cold rolling flows in Tilleur
-          Galvanisation lines 4 and 5 in Flémalle
-          Electrogalvanizing lines HP3 and 4 in Marchin

Separately organic coating line 2 in Ramet will be maintained only as a repairing line for the
Combiline products.

Additionally, the company is proposing that the coke plant, which is no longer viable due to the
excess supply of coke in Europe, also be permanently closed. 

The company plans to continue to operate the five core lines which employ approximately 800
people. These five lines are strategic due to their dedicated high quality products, specialized
processes and technological innovation. 

The company recognises that this proposal will be very difficult for the local community as it
affects approximately 1,300 people. It is committed to finding a socially acceptable solution for
all those affected.  This will include discussions on all means to reduce social impact with Trade
Union representatives, including the possibility of reallocation to other sites within the Group.

Bernard Dehut, CEO, ArcelorMittal Liege, said:
"We deeply regret that the economic situation has further deteriorated to the extent that the
proposal of further closures at Liege has become necessary.  We recognise that this is a very
difficult announcement for the employees at Liege, particularly coming so soon after the closure
of the primary phase.  We had hoped that that closure would be adequate in terms of adapting to
the reduced demand but given the continued lack of orders and overall weakness in the European
economy, it has become increasingly apparent that further action is required if we are to stem the
continued losses that the plant is reporting and return it to a sustainable basis. We would ask
the unions to please agree to enter into a constructive dialogue with us to secure the future of
the remaining facilities in Liege."

About ArcelorMittal

 

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60
countries.

 

ArcelorMittal is the leader in all major global carbon steel markets, including automotive,
construction, household appliances and packaging, with leading R&D and technology. The Group also
has a world class mining business with a global portfolio of over 20 mines in operation and
development, and is the world's 4th largest iron ore producer. With operations in over 22
countries spanning four continents, the Company covers all of the key industrial markets, from
emerging to mature, and has outstanding distribution networks.

 

Through its core values of sustainability, quality and leadership, ArcelorMittal commits to
operating in a responsible way with respect to the health, safety and well-being of its employees,
contractors and the communities in which it operates. It is also committed to the sustainable
management of the environment. It takes a leading role in the industry's efforts to develop
breakthrough steelmaking technologies and is actively researching and developing steel-based
technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of
the FTSE4Good Index and the Dow Jones Sustainability World Index.

 

In 2011, ArcelorMittal had revenues of $94.0 billion and crude steel production of 91.9 million
tonnes, representing approximately 6 per cent of world steel output. The Group's mining operations
produced 54 million tonnes of iron ore and 8 million tonnes of metallurgical coal.

 

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT),
Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia
(MTS).

 

For more information about ArcelorMittal visit: www.arcelormittal.com
http://www.arcelormittal.com/

 Contact information ArcelorMittal Investor Relations                              
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 Americas                     + 1 312  899  3569                                   
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 Contact information ArcelorMittal  Corporate Communications                       
 E-mail: press@arcelormittal.com mailto:press@arcelormittal.com                    
 Phone: +352 4792 5000                                                             
 ArcelorMittal Corporate Communications                                            
 Giles Read (Head of Media Relations)           + 44 20 3214 2845                  
 Tobin Postma                                                  + 44 20 3214 2412   
 
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