Steel Plants Owned By World Steel Giant ArcelorMittal Suspend Production And Take Holidays

ArcelorMittal Zenica steel plant halts production due to market conditions

According to information released by SEAISI, due to weak market conditions, ArcelorMittal Zenica long steel plant in Bosnia has temporarily suspended production.

“After careful consideration and evaluation of all available options, ArcelorMittal Zenica temporarily idled its blast furnace on November 11 and production at other facilities was gradually suspended, such as the rolling mill which ceased production on November 2,” a a spokesman told Kalanish. "The plant intends to resume normal operations as soon as demand returns to a level that allows the business to operate sustainably."

Zenica Long Steel Plant is the largest long steel producer in the Balkans, with a production capacity of 700,000 tons per year. The basic product range includes bar and coil rebar, wire rods, mesh beams, and lattice beams.

ArcelorMittal is the world's second-largest steel producer. The group is headquartered in Luxembourg. It is the largest steel producer in Europe and one of the largest steel producers in the Americas. It has steel-making operations in 16 countries, including 37 Integrated steel mills and mini-mill steelmaking facilities.

Revenue is second only to China Baowu

ArcelorMittal's crude steel production in 2022 will reach 68.89 million tons, employing 320,000 employees in more than 60 countries. According to the latest Fortune Global 500 list, among the Fortune 500 companies in 2023, ArcelorMittal Group ranks second only to China Baowu with revenue of US$79.8 billion (approximately RMB 584 billion). I was ranked second among the world's steel companies.

Reduction of more than 3,600 employees

However, affected by rising cost prices and continuous decline in steel shipments, the operating efficiency of the world's leading steel manufacturer is currently in a sluggish state. On November 9 this year, ArcelorMittal released its third quarter 2023 performance report, which showed that the company’s third-quarter operating income fell to US$1.203 billion, a decrease of 37.5% month-on-month and a year-on-year decrease of 27.1%; net profit was US$929 million. , a month-on-month decrease of 50.1% and a year-on-year decrease of 6.4%.

Not only that, the number of employees at ArcelorMittal is also continuing to decrease. According to ArcelorMittal's 2022 and 2021 annual reports, as of December 31, 2022, the number of ArcelorMittal employees has decreased by more than 3,600 people. The decision to suspend operations of the Resende factory may temporarily alleviate the current operating pressure, but in the long run, more fundamental solutions still need to be sought.

Despite challenging market conditions, ArcelorMittal remains optimistic about the long-term steel demand outlook. The company pointed out in its third quarter 2023 performance report that the company's profit before interest, taxes, depreciation and amortization per ton, and net profit per ton in the third quarter were both much higher than the historical average. At the same time, the company remains optimistic about the medium- and long-term steel demand prospects.

Under continued pressure from multiple factors, more and more companies are adopting methods such as suspending production and taking holidays to reduce pressure. For steel companies, how to respond to market changes, improve product quality and service levels, and reduce costs are all issues that need to be considered and solved. In this era full of challenges and opportunities, only by constantly innovating and keeping up with the pace of the market can we maintain our leading position in the fierce market competition.