Global steelmaker ArcelorMittal has announced that it is reducing production and temporarily idling its steelmaking and finishing assets, adapted on a country by country basis in alignment with regional demand as well as government requirements. The company said that, amid the global escalation of the corona outbreak and the measures introduced by governments worldwide, it is either seeing or expects to see a significant decline in industrial activity in many if not all of the geographic markets in which it operates, which is impacting its business.
In order to mitigate the impact of the lower level of production, ArcelorMittal is implementing significant measures to preserve cash and reduce costs in line with reduced production levels, including accessing measures introduced by governments to support companies during this difficult period.
“While Europe is currently the epicenter, according to official WHO data cases in the NAFTA region have now exceeded those in China, with cases also increasing in Africa, India, South America and the CIS. Where demand for our products continues, for example for food packaging, we will endeavor to maintain reduced operations to ensure we can meet customers’ requirements,” ArcelorMittal said.
Recently, ArcelorMittal has already implemented production reduction at some plants, as SteelOrbis previously reported, including the stoppage at the blast furnace of its Brazilian unit and the slower production rate at ArcelorMittal Italia.