After Michelin, ArcelorMittal is considering the shutdown of two small sites in France, in Reims and Denain, which could affect some 130 jobs, threatened by the “difficult economic context” in industry and the automobile industry, customers of the steelmaker.
“On November 19, 2024, the management of the company ArcelorMittal Service Centers brought together the members of its CSE in order to inform them of a project to reorganize the company and adapt its production capacities. This project includes the possible shutdown of the ArcelorMittal Service Centers production sites in Reims and Denain,” ArcelorMittal France announced in a brief press release on Tuesday evening.
“A sharp drop in activity among its Industry and Automotive customers
The company ArcelorMittal Service Centers, a subsidiary specializing in the wholesale trade of metals and minerals to businesses, “is facing a sharp drop in activity among its Industry and Automotive customers which has accelerated in recent months” explains the steelmaker. The announcement could cause the loss of around 130 jobs, around a hundred in Reims and 30 in Denain, central CGT union delegate David Blaise and CFE-CGC coordinator Xavier Le Coq told AFP.
Management indicates that it has “explained” to employee representatives the “constraints which lead it to present this project”, and “invites the social partners to a future meeting at the end of November as part of the information-consultation process”. “Negotiations with trade union organizations will take place on social measures in order to limit the impact on employment,” specifies the steelmaker.
For David Blaise, of the CGT, “as capitalists always do” this decision is justified “by competitiveness, fixed costs that are too high, the declining economic situation and particularly of the automobile industry”.
“There were other solutions, diversifying into other activities”
“We have a drop in the order book, but (…) there were other solutions, diversifying into other activities” for example, he adds. “We knew what was going to happen in the automobile industry, but nothing was anticipated,” accuses the employee representative. Just before the end-of-year holidays, “it’s hard for employees”. While the Denain site goes on strike immediately, actions are planned “on all ArcelorMittal sites” on Monday and Tuesday, added the unionist.
ArcelorMittal, with its blast furnaces in Dunkirk and Fos-sur-Mer, supplies steel to automobile factories and the construction industry in particular. In September, the CGT of ArcelorMittal led a day of action to “defend the French steel industry” and particularly within the French bases of the second largest steelmaker in the world, where many employees are still haunted by the painful closure of the Florange blast furnaces. in 2012.
Michelin, also citing the drop in automotive sales volumes, announced on November 5 the closure in 2026 of its factories in Vannes and Cholet (1,254 jobs). While emphasizing the need for jobs in certain industrial sectors which are on the rise, the Minister of Industry Marc Ferracci admitted on Saturday that there would be other announcements of closures of industrial sites in France after those announced in Michelin.
The automotive industry in Europe is particularly affected by the slowdown, with 32,000 job cuts announced in the first half of the year among European automotive equipment manufacturers.
