In a parliamentary hearing, the president of ArcelorMittal France expressed alarming concerns about the future of European steel. Faced with fierce international competition and overwhelming global overcapacity, each production site is at risk of closure. The need for decisive action from public authorities is being felt to avoid a potential decline of the steel industry on the continent, thus jeopardizing a vital branch of the economy.
The president of ArcelorMittal France, Alain Le Grix de la Salle, expressed strong concerns regarding the survival of the steel industry in Europe during a hearing in Parliament. He emphasized that all sites of production are exposed to the risk of closure by 2025 due to fierce international competition, notably from China, and the global overcapacity that far exceeds that of Europe. To preserve the industry, the leader is calling for mobilization of the public authorities and is awaiting the implementation of a steel plan at the European level.
The European Steel Industry in Crisis
The steel sector in Europe is facing a worrying drumbeat, threatened by unprecedented competitive pressure from abroad. Alain Le Grix de la Salle, president of ArcelorMittal France, recently alerted to the seriousness of the situation during a parliamentary hearing in Paris. Addressing the parliamentarians, he emphasized the urgency of a mobilization of the public authorities in France and Europe to counter this ongoing decline in competitiveness, exacerbated by low-cost imports and global overcapacity, particularly from China.
Threats of Closure
In France, the impact is already tangible with ArcelorMittal announcing the imminent closure of two sites, in Reims and Denain, which will result in the loss of 135 jobs. The situation in Germany is even more dramatic, with Thyssenkrupp, a heavyweight in the steel industry, planning to eliminate 10,000 jobs by 2030, illustrating the depth of the crisis. This series of closures directly highlights the volatility of the sector and the imperative need for a coordinated European strategic plan, called for by the industrialists.
The Call to Action and Industry 4.0 as a Solution
The response to this crisis could be partially found in the adoption of Industry 4.0, with new technological approaches capable of improving efficiency and reducing production costs. A concrete example is a steel beam manufacturer in Vincennes that has decided to invest in Industry 4.0 technology to enhance its competitiveness. These innovations could provide a lifeline to the European steel industry, provided they are supported by adequate public policies and intelligent regulation that allow for a fair and sustainable transition.
