Hereditary Grand Duke, Economy Minister Visit New ArcelorMittal Differdange Facilities

On Thursday 4 March 2021, His Royal Highness the Hereditary Grand Duke and Luxembourg's Minister of the Economy, Franz Fayot, visited the ArcelorMittal site in Differdange.

After taking stock of the group's current and future projects in the Grand Duchy, particularly those agreed to within the framework of the steel tripartite, ArcelorMittal managers presented the group's latest major investments in Differdange which include the acquisition of a new roller straightener, the largest machine of its kind in the world, and the implementation of a new process for the heat treatment of steel.

For more than a century, the Differdange site has forged a worldwide reputation for producing the heaviest, tallest and widest joists in the world, used in the construction of skyscrapers. Initiated in 2018, the project to install the new roller straightener finally came to fruition in 2020 with the entry into the industrial phase. This new straightener now makes it possible to significantly increase the efficiency of the production process as well as the quality of the joists produced on the site. This is considered a major sustainable investment for the group of nearly €40 million.

Beyond this acquisition, thanks to a modernisation programme, part of which was co-financed by the Ministry of the Economy, Differdange boasts an improved thermomechanical treatment process which allows the construction of beams of exceptional quality. This new process gives these steel sections a high yield strength and excellent weldability, while offering a significant saving in weight. This project represents an investment of €8.5 million for the group.

Already faced with difficult market conditions pre-pandemic due to a very competitive market, the steel industry was further impacted by the pandemic particularly due to the decline in activity in the industry automotive and construction. This led to the initiation of discussions in September 2020 within the framework of a steel tripartite.

On 25 January 2021, at the end of the steel tripartite, an agreement called “LUX2025” was concluded between the government, the social partners and ArcelorMittal Luxembourg. The agreement provides that the steel group will invest in the development of its production sites, including that of Differdange, to ensure the sustainability of activities in the Grand Duchy. Investments with key projects are planned to allow the development of new products and ensure the sustainability of factories.

During the visit, Economy Minister Franz Fayot stated: “ArcelorMittal continues to invest sustainably on its site in Differdange, in more modern installations allowing in particular energy savings. In order to support the sustainable development of the Luxembourg economy, the Ministry of the Economy is committed to supporting Luxembourg industrial players in the digital and ecological transition. ArcelorMittal occupies a very special place in this context”.

Roland Bastian, Country Head ArcelorMittal Luxembourg, added: “In this period of health crisis, the visit of HRH the Hereditary Grand Duke and the Minister of the Economy is a great encouragement for ArcelorMittal employees who are committed every day. to serve our customers around the world. Our innovative products, always more respectful of the environment and integrated into prestigious projects, allow the Grand Duchy to shine well beyond its borders”.

Heir to a long Luxembourg steelmaking tradition, ArcelorMittal is today the largest steel company in the world. The group is present in 60 countries and is the main supplier of quality steel to the major global steel markets, including automotive, construction, household appliances and packaging. In Luxembourg, the group has eight sites, including steel production units for long and drawn products, as well as the global research and development (R&D) centre for the group's long products. As of 31 December 2020, it had 3,662 employees, including 700 at the Differdange site. In 2020, ArcelorMittal Luxembourg produced 1.9 million tonnes of crude steel, mainly for export. The products exported by the company represent 14% of the total exports of the Grand Duchy. ArcelorMittal is also actively involved in the construction of the Luxembourg pavilion at the Dubai World Expo, placed under the banner of sustainable development.