Scrap Monster
Steel News June 06, 2019 10:30:28 AM

ArcelorMittal Plans Massive Layoffs at Italian Steel Plant

Paul Ploumis
ScrapMonster Author
The layoffs will be for a period of 13 weeks.
ArcelorMittal Plans Massive Layoffs at Italian Steel Plant

SEATTLE (Scrap Monster): ArcelorMittal Italia announced its decision to lay off nearly 1,400 workers at the former Ilva steel plant in Taranto, southern Italy. The layoffs will be for a period of 13 weeks. The company press release stated that the decision has already been conveyed to the Italian national and local unions. More details regarding the layoffs will be announced during the meeting this Thursday between company and union representatives.

Announcing the decision, ArcelorMittal Italia Chief Executive Matthieu Jehl said that critical steel market conditions throughout Europe have forced the company to arrive at the tough decision. He noted that the layoffs are only temporary and that any reversal in market conditions could result in suspension of layoffs. Further, he reiterated its commitment to implement the $2.70 billion industrial plan, which will lead to substantial reduction of environmental impact of the Taranto plant.

The decision is likely to impact the annualized steel production from the European region. During early-May this year, ArcelorMittal had announced its plans to cut annualized steel production in 2019 by 3 million tonnes. Towards end-May, it announced to further cut steel production by another 1-1.5 million tonnes in 2019.

Last week, it had announced production cuts at several EU steelmaking facilities in Germany and Spain, following current weak market conditions.

Meantime, the company has offered full support to the affected employees and their families during this difficult time.