ArcelorMittal to continue with production cuts

The world's largest steel producer ArcelorMittal today said it would continue to temporarily suspend and optimise production till it witnesses a revival in the "real demand" for the commodity.

The firm has already cut its output by up to 45 per cent and plans to trim its global workforce to tide over the global industrial downturn.

In light of the ongoing "exceptional economic environment", the company said it would extend production suspension at it several units.

"It is ...Sensible to continue with our plans to suspend and optimise production at our sites on a temporary basis, until we are confident that real demand is beginning to improve," ArcelorMittal Executive Vice-President and Member Management Committee Bernard Fontana said in a joint statement from the firm and its European Works Council (EWC).

However, the NRI billionaire L N Mittal-led firm said the output cut would be reviewed regularly and all the equipment of the affected units would be maintained so that production can be resumed swiftly when market conditions improve.

The company held a dialogue with representatives from EWC to provide update on the temporary suspension of production at sites in Europe, the statement said, adding the council has agreed for a "social dialogue" with the firm on production suspension at the at site level.