ArcelorMittal France is operating at 60-70% capacity, producing 6.5 to 6.8 million tonnes of steel annually, down from its full capacity of 10 million tonnes. The decline is attributed to weak steel consumption in France and across Europe.
The company is facing high energy costs, which are delaying its planned direct reduction plant (DRP) at the Dunkirk site. The DRP, designed to produce direct reduced iron (DRI) for future electric arc furnaces, is currently on hold due to economic feasibility concerns.
ArcelorMittal’s leadership has emphasized the need for policy support, including carbon offsetting measures and tax exemptions for energy-intensive industries. The company also highlights the slow adoption of green steel, as few consumers are willing to pay a premium for low-emission products.
Industry analysts note that Europe’s decarbonization strategy will play a crucial role in shaping ArcelorMittal’s future investments. The company awaits clearer regulations before committing to large-scale transitions in its production model.
