October 07, 2008

ArcelorMittal to meet French unions soon

It is reported that European steel giant ArcelorMittal has agreed to talk with unions over the planned elimination of 590 jobs at the company's French steel facility at Gandrange.

Mr LN Mittal president and CEO of ArcelorMittal met with Mr Nicholas Sarkozy president of France recently and agreed to take some extra time up to the beginning of April to consider alternatives to the closure of some units at the facility.

Mr David Martinon spokesman for French president in a brief statement said that "Mr Mittal has accepted the proposition of the President to pursue a dialogue with the unions and to reflect until the beginning of April on all the alternative solutions proposed by the unions.”

He said that Mr Sarkozy backs the union proposals, which he said present an economic viability in the medium and long terms.

ArcelorMittal plans to shut down one of the steel furnaces and a billet mill at the Gandrange facility, which is in the Moselle valley. The company has offered to relocate the affected employees elsewhere. ArcelorMittal faces higher operating costs, especially for energy, in an increasingly tough competitive environment.