According to local Belgian sources, the world's leading steel producer ArcelorMittal has decided to temporarily shut down two blast furnaces at its steelworks in Ghent in western Belgium and in Liege in eastern Belgium.
It is reported that the closure in question will be temporary, coming at a time when steel demand remains extremely low.
Commenting on the closures, Guy Bontinck, staff manager of ArcelorMittal Ghent said that the workforce should not fear for their jobs. ArcelorMittal employs 5,600 workers in Ghent.
However, in Liege, a number of temporary contracts will not be extended. A thousand workers are expected to be affected by the closure in Liege. The company management is looking at early retirement schemes for white collar workers, but insists that it will do everything it can to prevent job losses.
On the other hand, the company will close its Controeur mill near Montreal in Canada on April 18, and will stop its steel slab production from June 27, as demand remains sluggish due to the slump in the auto, manufacturing and housing sectors.
It is said that the decision to shut down operations in Canada was guided by the forecast that demand will not pick up for more than six months. The shutdown will lead to the loss of 198 jobs. This figure is in addition to 450 jobs which were cut in 2008 when the company closed hot mill and cold mill operations at the plant in question.