ArcelorMittal is evaluating the potential relocation of specific European support functions to India as part of a strategic initiative to consolidate certain operations in that region.
The group has provided assurances that there will be no relocation of European production activities to India.
“As discussed on 11 February 2025, at a meeting with the European Works Council, ArcelorMittal Europe is exploring opportunities to optimise its business processes, to provide centralised and cost-effective services for the Europe segment…The steel industry in Europe is facing several major challenges which are threatening the future of steelmaking on the continent. ArcelorMittal Europe is therefore working hard to respond to these challenges, including a focus on further reducing operating costs not directly related to steel production,” it says in a note obtained by Kallanish.
“A number of initiatives have already been implemented across our businesses in response to the challenges facing the steel industry. The initiative discussed today is to study the possibility of further centralising certain business support activities, by extending our business services hub to carry out some of these activities in India. The initiative is one element of the company’s response to the crisis and would bring the company in line with the approach being adopted by companies in a broad range of industries,” it added.
Elsewhere, the company says it plans to monitor various developments in 2025 before reaching a conclusive decision on the feasibility of its decarbonisation investments in Europe.
These developments include the planned review of the Carbon Border Adjustment Mechanism (CBAM), a forthcoming assessment of EU steel safeguards, and the release of the Steel and Metals Action Plan.
Upon completion, these initiatives will establish the parameters ArcelorMittal will use to formulate the business case for decarbonisation investments in Europe.
The steelmaker said last year it is suspending decarbonisation investments at its Dunkirk facility in northern France due to the downturn in the global steel industry.
The company has not disclosed any details regarding the progress of its sustainability investments at Gent or Dunkirk. However, it has shared an update on its decarbonisation investment in Spain, where engineering works are ongoing for the construction of a 1.1 million tonne EAF at its long products facility in Gijón (see Kallanish passim).
Natalia Capra France
