ArcelorMittal (MT), the world's largest steelmaker, Friday confirmed that it plans to permanently shut the liquid steel production arm of its Liege, Belgium steelworks in response to structural over capacity in Northern Europe and expectations that demand will take longer than expected to recover.

"Despite several improvement plans enacted in Liege to reduce the difference in the cost of hot-rolled coil between Liège and other sites in the region, the liquid phase in Liège is still not competitive enough under foreseeable market conditions," said Joao Felix da Silva, chief executive of ArcelorMittal Liège.

The Luxembourg-based steelmaker said available market data show a recovery in European steel demand to levels seen before the financial crisis of 2008-09 "will take longer than anticipated." As a result the company faces structural over capacity in Northern Europe and will focus its production in its lower cost sites in response.

ArcelorMittal said the shutdown won't affect its production capacity in Europe nor its market share and said that customers will continue to receive normal steel supply.

The company's labor unions said late Wednesday that the company is permanently shutting down two blast furnaces at the plant, which have a combined operational capacity of 3.1 million metric tons of liquid steel a year, according to ArcelorMittal's 2010 Fact Book.

- By Alex MacDonald, Dow Jones Newswires; +44 (0)7776 200 924, alex.macdonald@dowjones.com

Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Set 2024 a Ott 2024 Clicca qui per i Grafici di Arcelor Mittal
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Ott 2023 a Ott 2024 Clicca qui per i Grafici di Arcelor Mittal