ArcelorMittal to close two more French distribution centres
ArcelorMittal’s Distributions Solutions France confirms to Kallanish the permanent closure of two additional distribution hubs located in Strasbourg and Valence, eastern France.
The steelmaker has communicated to its employees and labour unions a strategy to restructure and reorganise its operations in light of the ongoing crisis.
“The difficult economic climate in the steel markets is weighing on its customers’ sectors of activity, particularly in local distribution for building, mechanical engineering, and general industry. This translates into a significant and lasting drop in volumes, of around 19% between 2019 and 2024, which is affecting the company’s results,” an ArcelorMittal Distributions Solutions France note explains.
The firm plans to redeploy the Valence and Strasbourg sites’ activities to neighbouring branches. The move could cut up to 28 jobs on the one hand, and create 15 on the other. Management is continuing the information-consultation process with employee representatives, with the next meeting scheduled for Wednesday.
ArcelorMittal’s French service centre division – CSE – announced last month the closure of the Reims and Denain flat products service centres in northern France. Reims and Denain will lay off a total of 135 workers, including 113 in Reims, 21 in Denain and one in Ottmarsheim. However, the steelmaker reports the creation of 19 jobs at other sites as the closures of the two facilities will sustain activity at other production sites.
Meanwhile, the steelmaker is pausing decarbonisation investments at its Dunkirk facility in northern France due to the downturn in the global steel industry “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,” a company spokesperson said last month.
Natalia Capra France
