ArcelorMittal, the Luxembourg-based steel giant, has announced it is delaying major investment projects in Europe, citing uncertainty over EU regulations.
The world’s second-largest steelmaker emphasized that it needs stronger protections for European steel before committing to further investments. Despite receiving €850 million from the French government to support its €1.7 billion decarbonization effort in France, ArcelorMittal is pausing projects due to concerns over competitive disadvantage from cheap Chinese steel imports and rising costs tied to EU environmental policies.
The company had planned investments in reducing emissions at several sites, including Dunkirk, Ghent, and Gijon, but these have been put on hold indefinitely. It’s pushing for the EU to introduce carbon border adjustments and stronger trade defense measures, citing the impact of cheap Chinese imports and high energy costs in Europe.
Union leaders are sounding alarms about potential job losses, particularly if the Dunkirk facility faces closure. Meanwhile, ArcelorMittal is also waiting for the European Commission’s upcoming Steel and Metals Action Plan. EU officials have promised a comprehensive strategy, but companies like ArcelorMittal are growing impatient, noting that the lack of decisive action could lead to irreversible damage to the European steel industry.
In a sign of the strain facing the sector, German steelmaker Thyssenkrupp also announced massive job cuts and delays in its green steel projects. The European steel industry is in crisis, grappling with reduced demand and the pressure of EU emissions regulations. Steel producers are calling on the EU to step up with stronger protective measures or risk losing the entire industry to foreign competition.
