Mittal saves his steel factory from French govt

December 01, 2012 17:05

In a deal that averts nationalisation of its Florange plant, ArcelorMittal has committed to the socialist French government it will not lay off any worker at the steel facility and make a fresh investment of 180 million euros ($233.6 million).

Also, the company will not shut down two blast furnaces at the Florange facility which will retain about 650 workers whose jobs were under threat.

The world's largest steel maker, owned by India-born tycoon Lakshmi Mittal, has 2,700 employees at the entire plant situated in the North-Eastern part of the country.

The deal was announced by French Prime Minister Jean-Marc Ayrault yesterday when the deadline for ArcelorMittal to find buyers for the two blast furnaces expired.

"The government decided against the idea of a temporary nationalisation that was floated in recent days. It ruled that option out given the commitments secured from ArcelorMittal," Ayrault said in a press conference.

He said the company has pledged that its investment in Florange over the next five years would not mean it would reduce its financial commitment at other sites in France.

The fresh funds at Florange would reinforce cold-steel and packaging operations at the site.

The steel giant employs about 20,000 people in France across multiple facilities.

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