ArcelorMittal Italy cuts steel output: Update

Luxembourg-based steelmaker ArcelorMittal has decided to temporarily reduce production and shut down several operations in Italy in response to the coronavirus outbreak, according to the union Fiom.

ArcelorMittal confirmed that production will be reduced at Taranto, with the workforce more than halved to around 3,800.

The shutdowns will include blast furnace number two, steelmaking shop one, hot-strip mill one and the cold-rolling mill, and will be implemented within the next week, with some shutdowns already in progress.

Following European carmakers' announcements over the past week about plant closures, Italian original equipment manufacturers have also decided to implement closures.

ArcelorMittal Italy decided on 13 March to reduce activities at its plant by 25pc. It told unions it planned to close the heavy plate mill, which was recently restarted, as well as some processing facilities.

"Fiom and Uilm have made additional specific requests to dramatically reduce the number of staff within the factory," Fiom said. Yesterday, the unions said an agreement had been signed with the government outlining safety measures, but that it was still up to individual companies to decide whether to stop or reduce activities. The unions previously asked for a halt until 25 March in order to sanitise plants.

It is unclear how long the shutdowns will last, as the coronavirus continues to spread across Europe. ArcelorMittal has also decided to postpone the restart of its Krakow blast furnace in Poland, which it had planned for mid-March.

By Lora Stoyanova

source: Argus Media