ArcelorMittal plans to complete primary steel production at its Duisburg, Germany plant by the end of 2027, closing the steel mill and rolling mill and switching to a new production model in the face of growing economic pressures. The company announced on Monday, September 1, that this decision was made after evaluating "several options" for maintaining steel production after the expiration of the contract for the supply of pig iron in September 2027. Contract
Its contract with thyssenkrupp Steel was terminated in December 2024, as its extension would have resulted in significant costs. It is increasing," ArcelorMittal said. Along with alternative pig iron supply schemes, the company considered switching to steel smelting in electric arc furnaces as part of its decarbonization strategy, but concluded that none of the options was economically viable.
"Although the structural challenges facing the European steel sector are significant and well-known, including low capacity utilization, declining local demand, limited export opportunities and high energy costs, securing the long-term future of ArcelorMittal Duisburg for our customers, employees and the entire region is an absolute necessity. Priority," said Sanjay Samaddar, Executive Director of ArcelorMittal Europe - Long Products. As Fastmarkets has learned, the company plans to rely on billets supplied from outside.
"Several ArcelorMittal enterprises, as well as other external manufacturers in Europe, are able to provide Duisburg with most of the necessary semi-finished products," said a company representative. "ArcelorMittal Hamburg, which produces steel using DRI-EAF technology (direct reduction of cast iron in an electric arc furnace), has every opportunity to supply Duisburg with semi-finished products with lower CO2 emissions."
The Duisburg plant currently has a capacity of 1 million tons of steel per year. It annually supplies products to customers in the automotive, machine-building and railway sectors. ArcelorMittal did not do this. specify the volume of wire rod that the company plans to produce after the end of steel smelting.
"We are implementing our plans to supply wire rod to the wire rod plant to ensure uninterrupted supply for all our customers after September 2027," Samaddar added. Guide
Negotiations have begun with 800 employees of the site, and it is reported that about 550 jobs are under threat. ArcelorMittal did not say when the board of directors would vote on the proposal or when consultations with employees were expected to be completed. Decision
Duisburg testifies to the growing pressure on the European