The French government struck a deal with ArcelorMittal (ISPA.AS) on Friday which will see the steelmaker invest 180 million euros ($234 million) in its Florange steelworks, allowing some 600 jobs at two shuttered blast furnaces to be saved.
Prime Minister Jean-Marc Ayrault said the two furnaces would not be restarted for now, given weak European steel demand, but ArcelorMittal would keep them in working order for future use in a test project for environmentally friendly steel production.
The deal saves face for Socialist President Francois Hollande, allowing him to fulfill an election pledge to fight industrial layoffs while avoiding the temporary nationalization of the site his industry minister had threatened.
“The government decided against the idea of a temporary nationalization,” Ayrault told reporters, three hours before a midnight deadline to strike a deal, adding: “There will be no redundancy plan.”
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via France clinches ArcelorMittal investment, saves jobs | Reuters.
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PRESIDENT Francois Hollande has given ArcelorMittal CEO Lakshmi Mittal until December 1 to draw up a plan to save jobs at a French plant of the world’s largest steel maker, including its nationalisation. Mr Hollande, who met Mr Mittal for an hour at the Elysee presidential palace in Paris on Tuesday, said he asked Mr … Continue reading »
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