CONTRECOEUR, QC, March 26 /CNW Telbec/ - ArcelorMittal Long Carbon North
America - Wire Group today announced the closure of production activities at
its Lachine facility to employees at the Lachine and Saint-Patrick plants in
Montreal. The Lachine wire mill accounts for 153 positions and will close down
on June 30, resulting in a net reduction of 100 positions within ArcelorMittal
in the Montreal area. However, various measures will be put into place to
avoid the need to lay off employees impacted by this decision.
"The Lachine and Saint-Patrick wire mills have both been operating at
less than 50% capacity since the beginning of 2007. This situation entails
high production costs in the North American wire market where supply has been
consistently exceeding demand since the early 2000s," said Alain Robitaille,
General Manager, Wire Group. "We cannot continue operating two wire mills in a
context where it is more advisable to operate only one plant and thereby bring
our costs down to more competitive levels to ensure long term profitability."
Mr. Robitaille added that U.S. markets for automotive construction and steel
wire consumption have been on the decline in the past five or six years, while
the value of the Canadian dollar continued to rise against the US dollar.
ArcelorMittal will work with the United Steelworkers (USW) union to
facilitate the phasing out process through regulatory and labour contract
mechanisms. The Saint-Patrick wire mill workforce will increase from 105 to
158 employees. As well, employees impacted by the closure will be offered
positions in other ArcelorMittal locations in the Montreal area. In addition,
ArcelorMittal will offer incentives to those eligible for retirement. All
these measures should eliminate the need to lay off employees impacted by this
"This closure represents the best option for Lachine and Saint-Patrick
customers. They will see no difference in their business dealings with us and
will continue to receive high quality products and services," concluded Alain
ArcelorMittal is the world's largest and most global steel company, with
310,000 employees in more than 60 countries. The company brings together the
world's number one and number two steel companies, Arcelor and Mittal Steel.
ArcelorMittal is the leader in all major global markets, including
automotive, construction, household appliances and packaging, with leading R&D
and technology, as well as sizeable captive supplies of raw materials and
outstanding distribution networks. An industrial presence in 28 European,
Asian, African and American countries exposes the company to all the key steel
markets, from emerging to mature, positions it will be looking to develop in
the high-growth Chinese and Indian markets.
ArcelorMittal key unaudited financials for 2007 show revenues of
USD 105.2 billion, with a crude steel production of 116 million tonnes,
representing around 10 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the
Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For further information:
For further information: Jacques Thivierge, (450) 587-8690