ArcelorMittal is considering closing two service centers in France as part of a restructuring plan for its Centres de Services business. The potential closures, which could affect the Reims and Denain centers, are attributed to a significant drop in activity among industrial and automotive customers. This decision may impact approximately 130 jobs and has sparked a negative reaction from trade unions.

The company has faced declining demand in the industrial sector, particularly in the automotive industry, which has intensified in recent months. In response, trade unions are demanding social measures to mitigate the impact on employees. Workers at the Denain plant have already gone on strike, with further actions planned at other French ArcelorMittal facilities.

ArcelorMittal has pledged to engage in negotiations with union representatives to discuss support measures for affected employees. This restructuring comes amid broader challenges in the European automotive industry, which has seen significant job losses and reduced demand, affecting the entire supply chain, including the steel sector.

Further consolidation and restructuring are expected across the European service center market due to decreased real consumption and financial difficulties faced by some processors. Other companies in the sector, such as Bilstein and Thyssenkrupp, are also considering or have already implemented similar measures.

ArcelorMittal’s restructuring efforts highlight the ongoing challenges faced by the steel industry in adapting to changing market conditions and maintaining competitiveness in a difficult economic environment.