Faced with the crisis hitting the European steel industry, ArcelorMittal has decided to take the lead. The Minister Delegate in charge of Industry, Marc Ferracci, announced, on November 23, 2024, that the French flagship was stopping its decarbonization project with a view to obtaining guarantees from the European Union and the French government.
A postponement of ArcelorMittal for strategic reasons
ArcelorMittal suspends its ambitious decarbonization project at the Dunkirk factory. CThe project aims to replace coal-fired blast furnaces with electrical installations running first on natural gas, then on hydrogen, with the aim of transforming the steel industry by 2026-2027. It also includes the creation of an iron recycling unit.
This decision comes in a difficult context for the European steel industry which is being hit hard by a fall in steel prices and sluggish demand. Marc Ferracci, Minister Delegate for Industry, underlines that “this context explains ArcelorMittal's decision to postpone its investment in the decarbonization of the Dunkirk site, which is currently not operating at full capacity. » The group is now awaiting strong measures from Brussels to protect European steel in the face of Asian competition, particularly Chinese.
Put pressure on public authorities
With an estimated cost of 1.8 billion euros, including 850 million euros in French state aid already committed, this postponement arouses strong criticism, especially since the group announced on November 19 , the closure of two of its industrial sites (Denain and Reims). The unions fear a disengagement from the multinational. David Blaize, CGT delegate, expresses his indignation: “There has been public aid from the French state amounting to 850 million euros, and today, the group would withdraw from decarbonizing its Dunkirk site. For me, it is just a strategy of the group to activate its development in India, Brazil and the American continent. »
The Dunkirk factory, which generates around 3% of annual CO2 emissions in France, plays a key role in the local economy. It directly or indirectly supports one in five families in the region. ArcelorMittal's message is clear: exert pressure on the European Union and the government before truly embarking on its decarbonization, the objective being to obtain guarantees which ensure protection of the European steel industry.
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