Luxembourg and CONTRECOEUR, QC, Dec. 11 /CNW Telbec/ - ArcelorMittal
(NYSE: MT) announces plans to build a $380 million beam mill in Contrecoeur
and the restructuring of its steel production activities in Canada. Flat
carbon production will be consolidated in Hamilton (Dofasco Facility) and long
carbon production in Contrecoeur (ArcelorMittal Montreal). With this
restructuring, the Contrecoeur site will close down its hot mill operations on
January 31 and its cold mill operations on February 29.
"ArcelorMittal wants to develop a sustainable Canadian steel business.
With the former Dofasco facility now part of ArcelorMittal in Hamilton, it
does not make business sense to have Contrecoeur compete with a sister company
in the flat carbon segment while Dofasco has unused capacity", stated Jos
Jacqué, CEO, Long Carbon, North America. Factors cited are the exchange rate,
the cost of metallics and significant increases in iron ore and natural gas
prices. In addition, Contrecoeur equipment and facilities are less competitive
in today's market.
For employees affected by the restructuring, ArcelorMittal will work with
the United Steelworkers (USW) union and government officials to facilitate
this transition through regulatory and labour contract mechanisms. There are
also recall rights for unionized employees who will be laid off. Staff
employees affected will be offered severance packages, as well as counselling
services to ease their job transition. More than 450 employees will be
eligible for retirement at the Contrecoeur site in 2008 and over 250 of them
have already confirmed that they will retire. This context should almost
eliminate the impact of job losses on employees.
In addition, ArcelorMittal has confirmed its intention to invest in an
800,000 metric ton state-of-the-art beam mill in Contrecoeur, subject to
appropriate agreements. The support of the Québec government has been a
determining factor in the company's decision. Once constructed, the new beam
mill will employ 200 full time employees and could begin production as early
"Our biggest challenge now in Contrecoeur is for management, the labour
union and employees, to work together to reduce costs and improve our
productivity through operational excellence, simplification, continuous
improvement and work flexibility. With everyone's cooperation and this new
investment, we have the potential to transform the Contrecoeur facilities and
make them some of the best performing mills in North America," concluded Jos
"The best way to create a sustainable model for a steel company is
through scale and diversification. With the merger of Arcelor and Mittal
Steel, we now have conditions in Canada to move forward and consolidate steel
production activities to create sustainable value for our customers, our
employees, our shareholders and host communities," said Jos Jacqué.
ArcelorMittal is the world's number one steel company, with
320,000 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 27 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 pro forma financials for 2006 show combined revenues of
USD 88.6 billions, with a crude steel production of 118 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 (MTS) and Valencia.
For further information:
For further information: ArcelorMittal Investor Relations: Europe: +352
4792 2414; Americas: (312) 899-3569; Retail: +352 4792 2434; SRI: +44 203 214
2854; Bonds/Credit: +33 1 71 92 10 26; ArcelorMittal Communications: +352 4792
5000, email@example.com; ArcelorMittal Corporate Communications: Mark
Mann, +44 203 214 2867; Jean Lasar, +352 4792 2359; Maitland Consultancy:
Lydia Pretzlik; Martin Leeburn; + 44 20 7379 5151; Belgium: Charles-Hubert
Gernaert, Comfi, +32 2 290 90 90; North America: Bill Steers, (312) 899-3817;
Canada/Contrecoeur: Jacques Thivierge, (450) 587-8690; Netherlands: Leon
Melens, Smink, Van der Ploeg & Jongsma, +31 20 647 81 81; Germany: Phoebe
Kebbel, Herring Schuppener, +49 69 92 18 74 77; France: Sandra Luneau, +33 1
71 92 00 58; Image 7 - Anne France Malrieu; Tiphaine Hecketsweiler; +33 1 5370
7470; Spain: Ignacio Agreda, +34 94 489 4162; Oscar Fleites, +34 98 512 60 29;
Keith Grant, +34 639 760 397