ArcelorMittal, the world's leading steel manufacturer, has announced the initiation of a reorganization project for its wire rod operations in Gandrange (in the northeastern French region of Lorraine) and in other European locations.
At a meeting held with the Select Committee of the European Works Council in Luxembourg, ArcelorMittal outlined its analysis of the business situation of its wire rod activity in northern Europe and an approach to turn around the Gandrange plant and optimize this business segment, part of its European long carbon steel activities. Meanwhile, ArcelorMittal also confirmed its commitment operations at Florange, Lorraine, part of the group's European flat carbon steel activities, and announced further investments.
As for the project for Gandrange, ArcelorMittal said it would close the billet mill and develop the wire rod and bar mill, which would process billets supplied from other steel plants, in particular from Germany (Duisburg-Ruhrort) and Luxembourg (Schifflange), enhancing the competitiveness of the overall wire rod business. Meanwhile, ArcelorMittal plans to give priority to the relocation of every single employee to its other facilities, in particular in Florange and Luxembourg. ArcelorMittal said that the Gandrange project is intended to strengthen the specialization of the currently loss-incurring Gandrange site in wire rod rolling and to enhance the future prospects of the business.
As for the Florange project, ArcelorMittal will increase its capital investment budget for this major integrated flat carbon steel production site by 2008 by more than 60 percent with a total of investment of €65 million. The investment will allow the group to extend the effectiveness of steelmaking operations.
ArcelorMittal believes that these initiatives will have the effect of boosting its presence in the Lorraine region.