Alain Le Grix de la Salle, president of ArcelorMittal France, a subsidiary of Luxembourg-headquartered global steel producer ArcelorMittal, has warned politicians of the risks the European steel industry is currently facing, according to media reports.
Mr. Le Grix de la Salle stated that the European steel industry as well as its French counterpart are in a major crisis and that overcapacity in the global steel market has become a fundamental issue that will continue. Currently, overcapacity amounts to 550-600 million mt of production per year, which is three to four times higher than production in Europe. In particular, in 2024, China exported 100-200 million mt of steel, which is the equivalent of steel consumption in Europe as a whole, he underlined. The ArcelorMittal official highlighted that the industry is not against imports, while adding that they should be subject to some limitations so as not to have a significant effect on domestic industries as they are having at present, and that European steelmakers are seeking fair competition conditions.
Referring to the measures in the US, Mr. Le Grix de la Salle said that the US is protecting its industries by every means, while the EU remains in a deadlock in terms of measures. He also pointed out that the European Steel Association (EUROFER) had issued the same warning and had called on the European authorities to take action back in December 2024. He added that, if the authorities do nothing to protect the European steel industry, all steel production sites in Europe and therefore in France will be in danger of closure this year.
As SteelOrbis reported previously, last year thyssenkrupp Steel Europe, a subsidiary of German steelmaker thyssenkrupp, announced its plans to reduce production and jobs due to overcapacity and the resulting rise in cheap imports, particularly from Asia, which was placing a considerable strain on competitiveness.
In the meantime, ArcelorMittal has temporarily postponed its investments in the decarbonization of its operations in France and Spain because of the same reasons, with Lakshmi Mittal, executive chairman of the company, pointing out that the EU needs better policies to protect its industry.
