By Alex MacDonald
LONDON--ArcelorMittal (MT), the world's largest steelmaker, said
Tuesday that it will start mothballing its two blast furnaces at
its steel plant in Florange, France and expects to the process to
be completed by the end of June.
The Luxembourg-based company said it will start the process of
shutting down the hot stoves linked to the blast furnaces on
Wednesday and the process should take 48 hours to complete. It will
also shut the gas network system and other parts linked to the hot
stoves.
The company said it has opened negotiations with unions related
to the long-term shutdown of the blast furnaces.
The planned shutdown is in line with an accord struck between
ArcelorMittal and the French government last year in which the
steelmaker secured the rights to mothball the loss-making furnaces
at Florange by promising there would be no lay-offs and promising
to invest 180 million euros ($235 million) in the plant over a
period of five years.
Although the furnaces will be shutdown, the plant will continue
to make finished steel products and will conduct research on ways
to reduce emissions of carbon dioxide in steelmaking.
Write to Alex MacDonald at alex.macdonald@dowjones.com