France and other European countries will advocate for protection to shield the European steel industry against Chinese imports, French government spokesperson Sophie Primas said on Thursday. The statement came in response to steel giant ArcelorMittal’s decision to cut approximately 600 jobs across seven facilities in France, citing the ongoing struggles within Europe’s steel sector.
“We have taken some first steps, notably on the question of quotas and the introduction of Chinese steel quotas, but we must go further and France is at the forefront,” Prima told broadcaster CNews/Europe1.
European steel producers are grappling with increasing energy costs and stiff competition from low-priced Chinese imports. Additionally, they now face higher tariffs on exports to the U.S.
Primas added that the declining competitiveness of Europe’s steel sector is in part due to China’s excessive steel production.
ArcelorMittal France North said in a statement sent to its Works Council on Wednesday that it had “implemented all possible short-term adaptation measures, but the company must now consider reorganisation measures to adapt its business to the new market context and to ensure its future competitiveness”.
ArcelorMittal’s decision comes after rival Tata Steel revealed plans earlier this month to cut roughly 20% of the workforce at its major Dutch plant. The layoffs have drawn backlash against ArcelorMittal, which has received French government subsidies as part of a broader effort to revive domestic industrial production.
“We have fought hard to ensure that the government and the European Union support the financing of the decarbonisation that is essential to ArcelorMittal,” said Xavier Bertrand, the president of Hauts de France, a region housing several of the sites affected by the job cuts.
He also posted a tweet on X saying, “It is time for the group to tell us when these investments will be made.”
source: Reuters