ArcelorMittal turns down bid to enter EU steel project

But trade unions and local politicians reacted angrily.Reuters

ArcelorMittal and Minister president Jean-Marc Ayrault said that the move did not mean the idea of using Florange for the ULCOS "green steel" project was be permanently abandoned, nor that the deal with the French Government had been undone.

But trade unions and local politicians reacted angrily.

ArcelorMittal, which has been under fire for months in France about the plan to close permanently on the grounds they are not economically viable Florange furnaces, said it could not at this moment the ULCOS project for technical reasons.

"(This) is perfectly coherent with what is in the agreement signed with the French Government," she said, adding: "this in no way means the ULCOS project has been abandoned."

Ayrault, whose Government was appointed by Francois Hollande, after the Socialist elected president in may, was said in a statement that the European Commission had indicated that the project can be pursued in a future entry.

Even in the best case, a possible start date would now be delayed by several years, throwing into question the idea that ArcelorMittal spending money to keep its shut down Florange ovens viable turnkey would love.

"LIARS"

"We have been cheated. They are liars, "said Michel Liegbott, a Socialist legislator for the surrounding region Moselle, BFM television. "They should have said what they say today, six months or a year ago."

CFDT union leader Edouard Martin told French media that ArcelorMittal had "deceived everyone" and vowed to restart the fight to keep operational Florange.

Ayrault own industry Minister, left-wing Arnaud Montebourg, waves had created before the deal was struck by the steel company Indian chief executive Lakshmi Mittal of "shameless lies" and said that he was no longer welcome in France to accuse.

Agreement last week, including ArcelorMittal has committed to the conservation of approximately 630 jobs on the two blast furnaces, was a crucial test for the Hollande pledge to a run of industrial layoffs and revive the result also French competitiveness.

France's unemployment hit a new 13-year high of 10.3 percent in the third quarter of the year, data showed on Thursday, who has vowed to put more pressure on Hollande, stack the rise to discontinue by the end of 2013.

ArcelorMittal had agreed with 180 million euros in Florange investing and the ovens to keep in State so they can be used if its application to use the site for the ULCOS project was successful.

ULCOS (Ultra-Low carbon steel production) is a consortium of 48 European companies and other organizations that for the development of ways to cut CO2 emissions from steel production to curb greenhouse gases blamed for global warming.

A spokesman for the European Commission confirmed on Thursday that the written notification of ArcelorMittal that it had decided to bid are "due to technical problems" attract have received.

Reuters

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