Luxembourg, September 10, 2020-
The management of ArcelorMittal Luxembourg met with the Board of Directors of ArcelorMittal Luxembourg today, Thursday September 10, 2020. During the meeting, the extremely challenging market conditions facing ArcelorMittal Luxembourg were discussed.
The impact of the Covid-19 pandemic has not spared any economic sector. The steel industry was already facing tough market conditions before the pandemic as a result of various factors (steel imports into Europe, lack of effective protection of the European market against these imports, reduction of opportunities in some export markets, increase in raw material prices, cost of the Emissions Trading System borne only by European steel producers). With the coronavirus pandemic, steelmaking has been further affected as a result of the significant drop in activity of its customers. This is especially the case in the two sectors that are the largest consumers of steel, namely the automotive and construction industries. Automotive production in Europe collapsed in the second quarter by 53%, and an unprecedented 26% decline in European automotive production is expected for the year as a whole.
Construction sites and new projects were also abruptly put on hold. Also in the second quarter, activity in the construction sector dropped by 15% in the euro zone compared to the same period of time in 2019, with few signs of a construction sector recovery on the way.
These structural impacts represent a serious threat to ArcelorMittal’s industrial and administrative activities in Luxembourg. In order to ensure a long-term future for the organisation, the management of ArcelorMittal in Luxembourg concluded that further cost-saving measures have to be taken and some changes must be implemented. As a consequence of this, around 570 jobs in ArcelorMittal in Luxembourg will be affected, across a number of different ArcelorMittal sites and offices in the country.
Consultation will be initiated immediately with employee representatives and the Luxembourg Government, in order to mitigate the impact of this situation. ArcelorMittal Luxembourg is committed to taking the necessary measures to find the best possible solutions for the people involved, within the framework of a transparent and constructive social dialogue, specific to the Luxembourg model.
The Luxembourg steel industry has in the past gone through difficult times. This crisis, with the significant structural changes it brings, regrettably requires a response that will result in a smaller
workforce. ArcelorMittal Luxembourg, as a major employer in the Grand Duchy, is committed to ensuring that the Luxembourg steel industry continues to be an industry leader, through its products which are recognized for their quality throughout the world.
Head of Country Luxembourg