Mr Peter Marsh of Financial Times cited some industry observers as warning that world’s largest steel maker ArcelorMittal may have to make permanent cuts of up to 10% in its steelmaking capacity as the industry reels from the impact of the worst global recession in decades.
The report said that although ArcelorMittal said that it is not contemplating permanent shut-downs or divestments but others in the steel industry think it may be pushed into taking such action.
The company said: “We have no current plans to permanently close any of our facilities. As we have made frequently clear to stakeholders, all suspension of production is temporary and will be reviewed on a continual basis.”
The report added that ArcelorMittal has slashed output in recent months by nearly 50% per cent through the temporary closures of steel plants and by putting tens of thousands of its 300,000 workers on short time working.