On March 20, global steel giant ArcelorMittal stated that it plans to idle its electric arc furnace and continuous caster at Schifflange, Luxembourg, indefinitely due to continued weakness in the European construction market.
Labor unions at ArcelorMittal Rodange and Schifflange have been informed about the intention to idle the plant. ArcelorMittal Rodange and Schifflange specializes in the production of long steel products, sections, rails, rebars and sheet piles.
The Luxembourg-headquartered steelmaker said 282 people would be affected by the proposal out of a work force of 626 at its Schifflange and Rodange sites. However, the measures announced to indefinitely idle operations are focused on Schifflange, not Rodange.
"Unfortunately the construction market, for which the products in Rodange and Schifflange are made, has not recovered from the downturn that started at the end of 2008 and there is still no sign of a meaningful improvement," said Nico Reuter, vice president of ArcelorMittal Long Carbon Europe and president of the unit's board of directors.
ArcelorMittal has lost more than €100 million ($132.3 million) over the last three years from its Rodange and Schifflange operations.