ArcelorMittal Belgium has confirmed that it has initiated a formal information and consultation procedure with employee representatives regarding the future of its tailored blanks operations in Ghent.
The procedure follows an internal review of the business, which identified severe structural challenges affecting the Ghent unit. As a result, the potential closure of the facility is now under examination.
Structural difficulties and financial pressure
According to the company, the Ghent tailored blanks site has been facing a pronounced decline in production volumes alongside a significant deterioration in margins. These factors have resulted in cumulative financial losses over several consecutive years, undermining the long-term viability of the operation.
Against this backdrop, ArcelorMittal Belgium stated that it must assess all available options, including the possible shutdown of the facility, while engaging with employee representatives in a transparent and structured manner.
Management underscores engagement during process
Commenting on the development, Sibel Onen, CEO of ArcelorMittal Tailored Blanks, acknowledged that the period ahead will be particularly difficult for employees at the Ghent operation.
She emphasized that the company is committed to maintaining open, constructive dialogue with employees and other stakeholders throughout the consultation phase, and to ensuring clear and transparent communication during the process.
Automotive sector weakness weighs on operations
The company underlined that ArcelorMittal Tailored Blanks has been directly affected by the contraction of automotive manufacturing activity across Europe, a trend that continues to weigh heavily on the wider European steel sector.
While ArcelorMittal remains the leading supplier of tailored blanks in Europe and continues to support its automotive customers, it acknowledged that ongoing market weakness and operational pressures pose significant challenges to the long-term sustainability of certain assets.
ArcelorMittal Tailored Blanks stated that it will not provide further detailed comment on the Ghent site until the information and consultation process with employee representatives has been concluded.