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Steel experts say ArcelorMittal could cut steel output permanently

Monday, 27 April 2009 15:06:00 (GMT+3)   |  
       

Some industry observers have warned that the world's largest steelmaker ArcelorMittal may have to make permanent cuts of up to 10 percent in its steelmaking capacity as the industry reels from the impact of the worst global recession in decades - in comments given to the financial and business media.

According to the report in question, although ArcelorMittal has said that it is not contemplating permanent shutdowns or divestments, others in the steel industry have stated it may be pushed into taking such action.

ArcelorMittal slashed output in recent months by nearly 50 percent through the temporary closures of steel plants and by putting tens of thousands of its 300,000 workers on short time working.

Meanwhile, ArcelorMittal stated, "We have no current plans to permanently close any of our facilities. As we have made frequently clear to stakeholders, all suspension of production is temporary and will be reviewed on a continual basis."


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