ArcelorMittal Announces Temporary Cut Back in EU Steel Production

SEATTLE (Scrap Monster): Steel giant ArcelorMittal announced plans to temporarily reduce European steel production by 3 million tonnes per annum. The company blamed several factors including falling demand, escalating imports, high energy costs and rising carbon costs for the decision.

According to company press release, the company has decided to temporarily idle steelmaking at its Kraków, Poland facilities and reduce production at Asturias, Spain facility. It had also decided to slow down the planned increase of shipments at ArcelorMittal Italia to a six million tonne annual run-rate. All the above measures will lead to reduction of around 3 million tonnes in annualized steel output by the company’s European operations.

Commenting on the decision, Geert van Poelvoorde, CEO, ArcelorMittal Europe – Flat Products noted that the action reflects the weak demand environment in Europe. The company will announce necessary social measures to support the employees and local communities who are badly impacted by the decision.