MT ArcelorMittal

TIDMMT 
 
 
   Regrettable decision necessary due to combination of weakening demand, 
rising imports coupled with insufficient EU trade protection, high 
energy costs and rising carbon costs 
 
   6 May 2019, 08:55 CET 
 
   ArcelorMittal today announces its intention to temporarily idle 
production at its steelmaking facilities in Kraków, Poland and 
reduce production in Asturias, Spain. In addition, the planned increase 
of shipments at ArcelorMittal Italia to a six million tonne annual 
run-rate will be slowed down following a decision to optimise cost and 
quality over volume in this environment. 
 
   Together, these actions will result in a temporary annualised production 
reduction of around three million tonnes. 
 
   Commenting, Geert van Poelvoorde, CEO, ArcelorMittal Europe -- Flat 
Products, said: 
 
   "The difficult decision to temporarily reduce our European primary flat 
steel production has not been taken lightly. We understand the impact 
this has on employees and the local communities and will be working to 
ensure social measures are in place to support them during this period. 
 
   "These actions reflect the weak demand environment in Europe today, a 
situation further compounded by increased imports despite the safeguard 
measures introduced by the European Commission. High energy costs and 
increasing carbon costs are adding to the tough environment. 
 
   "We are engaging with stakeholders to request that the safeguards are 
strengthened to prevent a further increase in imports as a result of 
continued global overcapacity and a weakening economy in neighbouring 
countries including Turkey. We will also continue to make our case for a 
green border adjustment to be introduced to ensure that imports into 
Europe face the same carbon costs as producers in Europe. The steel 
industry in Europe can have a strong future but there must be a level 
playing field to ensure that an unfair advantage is not given to 
competitors outside the region." 
 
   In Kraków, the primary production (blast furnace and steel plant) 
will be temporarily idled. The Polish steel market has been particularly 
hard hit, due to a near fourfold year-on-year increase in Russian steel 
imports in 2018, and among the highest electricity prices in Europe. 
 
   In Asturias, primary production will be reduced. Electricity costs are 
also very high in Spain, and the southern European market has been hit 
by an unprecedented rise in imports from outside the EU. 
 
   Despite the introduction of the permanent EU safeguard tariffs in 
February 2019 there has been a continued and consistent rise in flat 
steel imports into Europe. Flat steel imports into Europe are currently 
at record highs, with imports of hot rolled coil up 37 per cent this 
year from 2017, on an annualised basis. In addition, the price of carbon 
has risen by approximately 230 per cent since the start of 2018, placing 
further competitive pressure on European steelmakers. In the EU 
Emissions Trading System (ETS), only steel produced in Europe is subject 
to a carbon levy. ArcelorMittal has previously called for the 
introduction of a green border adjustment whereby steel imported into 
Europe has the same standards applied on CO(2) as European produced 
steel under the ETS. 
 
   ENDS 
 
   About ArcelorMittal 
 
   ArcelorMittal is the world's leading steel and mining company, with a 
presence in 60 countries and an industrial footprint in 19 countries. 
Guided by a philosophy to produce safe, sustainable steel, we are the 
leading supplier of quality steel in the major global steel markets 
including automotive, construction, household appliances and packaging, 
with world-class research and development and outstanding distribution 
networks. 
 
   Through our core values of sustainability, quality and leadership, we 
operate responsibly with respect to the health, safety and wellbeing of 
our employees, contractors and the communities in which we operate. 
 
   For us, steel is the fabric of life, as it is at the heart of the modern 
world from railways to cars and washing machines. We are actively 
researching and producing steel-based technologies and solutions that 
make many of the products and components people use in their everyday 
lives more energy efficient. 
 
   We are one of the world's five largest producers of iron ore and 
metallurgical coal. With a geographically diversified portfolio of iron 
ore and coal assets, we are strategically positioned to serve our 
network of steel plants and the external global market. While our steel 
operations are important customers, our supply to the external market is 
increasing as we grow. 
 
   In 2018, ArcelorMittal had revenues of $76.0 billion and crude steel 
production of 92.5 million metric tonnes, while own iron ore production 
reached 58.5 million metric tonnes. 
 
   ArcelorMittal is listed on the stock exchanges of New York (MT), 
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock 
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). 
 
   For more information about ArcelorMittal please visit: 
http://corporate.arcelormittal.com/ 
 
 
 
 
 
 
 
Contact information ArcelorMittal 
 Investor Relations 
 
Europe                                                   +44 20 7543 1156 
Americas                                                  +1 312 899 3985 
Retail                                                   +44 20 7543 1156 
SRI                                                      +44 20 7543 1156 
Bonds/Credit                                              +33 171 921 026 
 
 
Contact information ArcelorMittal 
 Corporate Communications 
 
                                           mailto:press@arcelormittal.com 
  E-mail:                                         press@arcelormittal.com 
                                         -------------------------------- 
Phone:                                                    +4420 7629 7988 
 
 
ArcelorMittal Corporate Communications 
 Paul Weigh 
 ArcelorMittal Europe Communications                     +44 20 3214 2419 
 
Sophie Evans                                              +44 7825 595849 
 
 
 
 
 
 

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