ArcelorMittal to cease production in Bettembourg

(JB) Steel giant ArcelorMittal is to cease production of saw wire at its Bettembourg site from June 2016, saying all employees will be offered a “suitable solution”.

In a press release published on Tuesday the firm, which has its headquarters in Luxembourg, said that production will continue until mid-2016 to fulfill current orders.

After June 2016, the customer portfolio is to be taken over by voestalpine, an Austrian partner which is a specialist in this area. The building hosting the producing lines is to be acquired by Sam Hwa, a South Korean company involved in the automotive market.

Meanwhile, Kiswire, which is already located in the administrative offices at the Bettembourg site, is to acquire the building to set up its offices. “

By the end of 2016, a development plan, which is currently being studied, will allow to set up new economic activities for the future of this site,” the press release said. 

65 employees affected

As for the future of the 65 employees in Bettembourg, ArcelorMittal said it will try to accommodate them in other roles within the company.

It said that there remained scores of vacancies within the Luxembourg group. The firm said it would work “intensively to offer everyone a solution to their situation.”

The decision to cease production comes after “recurring losses, despite an aggressive and ambitious action plan implemented in September 2014.

The commercial redeployment and the evolution of sales prices have failed to return on profitability, in the saw wire market now concentrated in Asia where are located the main outlets for it, such as photovoltaics and semiconductors.”

Luxembourg union LCGB said it regretted the decision of the steel group and underlined the importance of securing posts for the 65 employees affected.

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