ArcelorMittal’s Distributions Solutions France has confirmed the permanent closure of two of its distribution hubs in eastern France, located in Strasbourg and Valence. The decision, stemming from the ongoing crisis in the steel industry, highlights the steelmaker’s efforts to adapt to the challenging economic environment. ArcelorMittal has informed both its employees and labor unions about its plans for restructuring and reorganizing operations to address the decline in demand, particularly within the building, mechanical engineering, and general industry sectors.
The company’s internal memo attributes the closures to a “significant and lasting drop in volumes,” which have declined by approximately 19% between 2019 and 2024. This downturn has directly impacted the company's sales and, consequently, its operations in the local distribution sector. As a result, ArcelorMittal has decided to consolidate its activities by transferring the functions from the Strasbourg and Valence sites to neighboring distribution hubs. This shift is expected to lead to the reduction of up to 28 jobs, although 15 new positions may be created in the process at other sites. The company is continuing consultations with employee representatives to ensure transparency and support for the affected workers.
This move is part of ArcelorMittal's broader effort to adjust to market realities. In November 2024, the company also announced the closure of its Reims and Denain flat products service centers in northern France. These closures will result in the layoff of 135 workers—113 in Reims, 21 in Denain, and one in Ottmarsheim. However, the company has noted that 19 new jobs will be created at other locations within the company, as operations are shifted to maintain overall activity.
The closures come amid a broader decline in demand for steel products, which has been exacerbated by uncertainties surrounding global trade policies. ArcelorMittal has also paused its decarbonization investments at its Dunkirk facility, citing the challenging market conditions and the need for more robust policy measures, particularly the implementation of a more effective Carbon Border Adjustment Mechanism and stronger trade defense measures.
As the global steel industry grapples with reduced demand and policy challenges, ArcelorMittal's actions in France underscore the difficult adjustments being made by major players in the sector to navigate an increasingly volatile and competitive market. The company’s ongoing restructuring efforts are aimed at securing its long-term competitiveness while minimizing the impacts on its workforce.
