ArcelorMittal Europe: CEO calls for strategic action plan for European steel industry

On the occasion of ArcelorMittal Poland's 20th anniversary, Geert Van Poelvoorde, CEO of ArcelorMittal Europe, emphasized the urgent need for a clear and decisive action plan for the steel industry in Europe. He called for support from the European Union, including emergency trade measures, to ensure the sustainability of steelmaking in Europe amidst growing challenges.

In 2004, Mittal Steel acquired Polskie Huty Stali as part of Poland’s privatization process. Over the last two decades, ArcelorMittal has significantly modernized its operations in Poland, making it home to Europe’s most advanced hot rolling mill in Kraków and a heavy section mill in Dąbrowa Górnicza that produces 120-meter-long rail. The company has achieved notable environmental improvements, reducing carbon dioxide emissions by 42%, dust emissions by 90%, and energy consumption by 40%. According to a 2023 report by the Warsaw School of Economics, ArcelorMittal was Poland's second-largest foreign investor. These achievements come at a time when many steel companies in Central and Eastern Europe are grappling with significant challenges to their survival.

During the 20th-anniversary event in Sosnowiec, Poland, Van Poelvoorde outlined the pressures facing European steelmakers, particularly the high costs of production and the influx of subsidized, low-cost imports. He expressed concern about the industry's future but stressed that with the right policies, steel production could remain a pillar of European industry.

"As in the rest of Europe today, Polish steelmakers are under intense pressure due to the high costs of making steel in Europe and the volume of subsidized, cheap imports flooding the market. As a result, the European steel industry will continue to shrink. But with the right policies in place to support us, we can thrive—and our industry can continue to be the foundation of European industry in a new era," Van Poelvoorde stated.

He also urged the Polish government to support the steel sector as Poland prepares to assume the Presidency of the European Council in the first half of 2025. This period will be crucial as the Carbon Border Adjustment Mechanism (CBAM) is finalized, determining the competitiveness of European steelmakers while pushing for investments in decarbonization.

“With Poland due to hold the presidency of the European Council for the first half of next year, I am sure that we can count on Poland’s support to translate the Commission’s ambitions into an effective policy to support the industry’s decarbonization, and to introduce much-needed emergency trade measures for the steel sector,” Van Poelvoorde said. He also noted that the next six months of 2025 would be critical in shaping the European Commission’s steel and metals action plan and the broader Clean Industrial Deal, which would help level the playing field for European industry.

Van Poelvoorde welcomed the appointment of Stéphane Séjourné as the proposed European Commissioner for Prosperity and Industrial Policy, whose mission includes the development of a steel and metals action plan. “This has never happened before, and we look forward to seeing the detailed plan to understand how it will support us. I am happy to hear that our calls for a new Industrial Deal for Europe seem to have been acknowledged,” he remarked, though he emphasized the need for tangible action to accompany these plans.

In his concluding remarks, Van Poelvoorde addressed the growing protectionism worldwide and its implications for Europe, stressing the need for a strong industrial base. “The understanding is now increasing that remaining an economic powerhouse is impossible without a strong industry and specifically, a strong steel industry. Decarbonizing by de-industrializing is not a solution for Europe, the world, or the climate.”

Source and Photo: Arcelormittal