“If work does not begin in 2025, the site is dead”, ArcelorMittal delays its production of carbon-free steel

The steelmaker ArcelorMITtal will delay its project to produce carbon-free steel in Dunkirk. A situation which worries the CGT in the face of the obligations imposed by COP21. The survival of the northern production site would be at stake.

This is an announcement that the unions at the ArcelorMittal Dunkirk factory learned about in the press. The steel giant has announced that it is delaying its carbon-free steel production project, since the teeth of CGT officials have been grinding.

Contacted by AFP, Minister Delegate for Industry Marc Ferracci confirms. “The European steel industry is currently in crisis, with demand and prices for steel reaching historic lows. 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.“

“We are the biggest polluter in France“, relates Gaëtan Lecocq, general secretary of the CGT at Arcelor Dunkerque. To reduce this carbon footprint, ArcelorMittal has planned the construction of two electric furnaces and a direct iron reduction unit in Dunkirk, a first step in the production of carbon-free steel.

We are the biggest polluter in France.

Gaëtan Lecocq

General Secretary of the CGT ArcelorMittal Dunkirk

To do this, the giant’s project was costed at 1.8 billion euros, including state aid of up to 850 million euros.

But this investment will be delayed. A delay such that it threatens the survival of the factory according to the unionist. “Since COP21, we have committed to decarbonizing our site by a third by 2030“, explains Gaëtan Lecocq. But with this delay, “if work does not begin in 2025, the site is dead.”

The most pessimistic scenario, which we fear, is the closure of the factory.

Gaëtan Lecocq

General Secretary of the CGT ArcelorMittal Dunkirk

Ce “dark scenario“, as he describes it, could have a “domino effect“across the entire steel industry in France.”In the best case scenario, Arcelor eliminates the entire cast iron sector, which represents half of the factory (…). The most pessimistic scenario, which we fear, is the closure of the factory. (…) Arcelor Mittal Dunkerque supplies several sites in France. If we fall, the other sites will fall with us.“

Joined by its colleagues from the CFDT in the fight, the CGT of Arcelor Dunkerque explains “multiply”meetings with national deputies, European deputies“, they even met Xavier Bertrand. “We push the doors, we have nothing to lose” estimates Gaëtan Lecocq.

Because the root of the problem lies in competition on the European market. “What we produce in Dunkirk is a drop in the ocean compared to production in China. Steel arrives in Europe at reduced prices, it is more competitive. Europe must move!“

The days go by and the picture gets darker for ArcelorMittal employees in the North. A few days ago, the Denain production site also announced its possible closure. Gaëtan Lecocq denounces this, a lack of dialogue with management.

“Learning this just before the Christmas holidays is not pleasant for the employees, they are not well. The level of social dialogue at ArcelorMittal France is pitiful. The friends of Denain have already suffered the big closure in the 70s which devastated the basin“, castigates the trade unionist.

For its part, ArcelorMittal defends itself: “Final investment decisions have not yet been made. The market in which we operate is difficult, and the many political and regulatory uncertainties strongly impact our industry: we need an effective carbon border adjustment mechanism, as well as more robust trade defense measures, to combat unfair extra-European competition in order to preserve the competitiveness of our steel production.“

This expensive decarbonized steel project will “shaping the future of our group for decades to come“, concludes ArcelorMittal France. “It is therefore important that we make sure we make the right decisions for our future.”

With AFP