ArcelorMittal is pausing decarbonisation investments at its Dunkirk facility in northern France due to the downturn in the global steel industry, sources close to the matter tell Kallanish.
French industry minister Marc Ferracci confirmed to local press the suspension of the project.
“We remain committed to decarbonising our assets in Europe and continue to fine-tune the engineering studies we have been undertaking this year, but no final investment decisions have yet been taken,” a company spokesperson says. “We are operating in a difficult market, and there are a number of policy uncertainties that are impacting the industry. We need an effective Carbon Border Adjustment Mechanism, as well as more robust trade defence measures, to strengthen the business case.”
“Furthermore, we await the detail of the European Commission’s Steel and Metals Action Plan,” the spokesperson continues. “These are multi-billion-dollar investments that will shape the future of the business for decades to come. It is therefore entirely appropriate that we take great care to ensure that the decisions made are the right ones for our future”.
ArcelorMittal France was awarded €850 million ($890.55m) through a French measure approved by the European Commission to decarbonise the steelmaking process at Dunkirk. A 2.5 million tonnes/year capacity direct reduced iron unit and two electric arc furnaces were supposed to replace two of the three existing blast furnaces and two of the three basic oxygen furnaces by 2026. It remains unclear when this project will now be completed.
ArcelorMittal’s French service centre division is meanwhile undergoing restructuring, which may result in the closure of two service centres in the country – Reims and Denain – amid the downturn in the domestic steel sector (see Kallanish 22 November).
Natalia Capra France
