ArcelorMittal Announces Major Changes for Quebec Steel Mill

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Researched by Industrial Info Resources (Sugar Land, Texas)--ArcelorMittal (Luxembourg) is moving forward with additional closures and a major expansion. With the company's latest statement proclaiming an investment of $380 million for a steel beam mill in Contrecoeur, Quebec, all would seem as bright as a new penny. But, just like any coin, there are two sides to this proclamation. In this case, one side foretells the hiring of new employees along with a major investment; the other side is a manifesto that two production areas would be closing at the same plant. The hot mill operation is scheduled to cease operation at the end of January 2008, but the news of closures didn't end there because on February 29, 2008, the cold mill operations will also end. The hot mill equipment will be demolished, sold or scraped mostly because of its older age and general poor condition. The cold mill facility with its pickling line, rolling mills, annealing furnaces and temper mill will be mothballed. Mothballing the cold mill would allow the mill to be restarted at a later date if industry demand warrants it.

ArcelorMittal has said that it wants to develop a Canadian steel business that will last through the years. Many employees will be hired, retired and/or let go during this transaction time. Once constructed, the new beam mill is expected to employ 200 full-time employees by 2010; this number is expected to offset the 450 layoffs that have been announced with the closing of the two mills.

It's not only the Contrecoeur plant that will go through changes with the restructuring; ArcelorMittal expects to make changes to its other steelmaking activities in Canada. Last fall, the company acquired Dofasco Incorporated in Hamilton, Ontario, and output for the production of flat carbon steel, used in car-body panels and appliances, will be consolidated in Hamilton and long carbon steel production at Contrecoeur. The changes are not only taking place in Canada. It was reported last year that the Weirton, West Virginia, hot mill would close. For more information, view related October 30, 2007, article - Weirton Steel Hot Strip Mill Closing after Nearly a Century.

ArcelorMittal is considered the world's No. 1 steel company with more than 300,000 employees in more than 60 countries. The company brought together the world's top two steel companies. Arcelor and Mittal Steel joined in mid-2006. ArcelorMittal is listed on the stock exchanges of New York, Amsterdam, Paris, Brussels, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia.

The company has several major projects on tap. A few of these are: the $180 million Burns Harbor, Indiana, steel mill to be invested in the relines for blast furnaces C&D, as well as the possibility for a $12 million heat-treating line expansion. Both of the projects are scheduled to begin in late 2008. At the Riverdale, Illinois, steel mill the company is performing project justification for a $165 million electric arc furnace meltshop addition. Although it's still in the early stages of development, the project could take off late this year or early next year if all goes as planned.

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