By Alessandro Torello and Alex MacDonald
BRUSSELS--ArcelorMittal (MT), the world's largest steelmaker,
rebuffed Tuesday a call by a top European Union policymaker to
postpone the closure of plants in Europe until the EU publishes a
strategy to revitalize the sector.
"It is not possible for ArcelorMittal to delay the
implementation of our proposed restructuring plans," a spokesman
for the company said. "The economic situation in Europe is
extremely fragile and this has substantially reduced steel demand.
Failing to take action in response to this will only serve to
weaken the company in Europe, thereby threatening the viability of
other plants," the spokesman explained.
He was responding to an appeal by Antonio Tajani--the EU
industry commissioner who is working on an EU-wide revival plan for
the industry--to wait until such plan is released, before the
summer.
Steel demand in Europe has fallen by nearly 30% since 2007, a
sign that the sector has been heavily hit by the continent's debt
crisis, as some of its main customers--the automotive and
construction industries-- have been the worst hit.
ArcelorMittal has responded to weak demand and excess production
capacity by temporarily idling blast furnaces, and announcing the
permanent closure or mothballing of certain loss-making operations
in Belgium and France.
"I want to ask ArcelorMittal to postpone the decision to close
the plants at least until the approval of the text of the European
Commission's action plan, because I am convinced that we can give
an answer in trying to defend the steel industry in Europe," Mr.
Tajani said earlier Tuesday.
Write to Alessandro Torello at alessandro.torello@dowjones.com
and Alex MacDonald at alex.macdonald@dowjones.com
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