ArcelorMittal is considering closing its Reims and Denain facilities, which may lead to around 130 job losses, amid a downturn in demand from automotive clients. A meeting was held on November 19, 2024, to discuss a reorganization plan. Union representatives expressed concerns over the decision’s focus on competitiveness rather than exploring alternative solutions. As strike actions begin at the Denain site, further protests are expected, reflecting broader challenges in the European automotive sector and its impact on employment.
ArcelorMittal’s Potential Site Closures in France
Following in the footsteps of Michelin, ArcelorMittal is contemplating the shutdown of two smaller facilities located in Reims and Denain, which could jeopardize approximately 130 jobs. This decision comes amid a challenging economic climate impacting the steel industry and its key automotive clients.
On November 19, 2024, ArcelorMittal Service Centers held a meeting with the members of its employee representative body to discuss a reorganization plan aimed at adjusting production capabilities. The management has indicated the potential closure of the production sites in Reims and Denain, as stated in a recent announcement from ArcelorMittal France.
Challenges Facing ArcelorMittal
The ArcelorMittal Service Centers, a subsidiary focused on the wholesale distribution of metals and minerals, is experiencing a notable downturn in activity due to a significant drop in demand from its industrial and automotive clients, which has intensified over the past few months.
This impending closure could result in job losses, with estimates suggesting around 100 positions in Reims and 30 in Denain, according to union representatives David Blaise from CGT and Xavier Le Coq from CFE-CGC. Management has conveyed the rationale behind this project to employee representatives and has committed to further discussions at the end of November as part of the consultation process.
Negotiations with unions will take place to explore social measures aimed at mitigating the impact on employment. Blaise expressed concerns that the decision is primarily driven by competitiveness and high fixed costs, emphasizing that alternative solutions could have been pursued, including diversification into different activities.
As the Denain site has already commenced strike actions, further demonstrations are anticipated across all ArcelorMittal locations. The company, which supplies steel predominantly to automotive and construction sectors from its blast furnaces in Dunkirk and Fos-sur-Mer, continues to face the repercussions of an industry-wide slowdown.
In a broader context, the automotive sector in Europe is grappling with significant challenges, with a reported 32,000 job cuts among suppliers in the first half of the year. This trend highlights the ongoing volatility within the industry, prompting concerns about the sustainability of manufacturing jobs in France.