2024-11-18 22:17:00
The Flemish socialist union ABVV considers the investment of two billion euros announced by ArcelorMittal in 2021 uncertain. Management recognizes a difficult situation in Europe.
The socialist union ABVV – the Flemish counterpart of the FGTB – sounds the alarm after a works council at the international steel producer ArcelorMittaland more particularly about the Ghent factory where 4,000 people work. According to the union, management appears to be backtracking on a great investment to green the steel production of the Ghent site.
“During the works council on November 14, we were told that the multi-billion investment planned for the greening of ArcelorMittal Ghent would not come true“, says Frank Van Dorsselaer, secretary of ABVV-Metaal. This investment was announced in 2021 by ArcelorMittalwith the support of the Flemish government and the Federal Government. It was to enable the creation of a installation DRI (for the processing of pre-reduced iron ore) and two electric blast furnacesin order to reduce the factory’s CO2 emissions. The total cost was around two billion euros.
“In the short term, there will be no not a single DRI installation in Europe”, explains Frank Van Dorsselaer. “Projects around the storage and reuse of CO₂ will also be stopped for the moment. We are only talking about the possible installation of three electric ovens in EuropeGhent being one of the potential sites. A final decision on this is expected in the first quarter of 2025.”
“We are waiting to see what the new European Commission will decide, among other things on the carbon tax imposed on the steel sector.”
“The research continues,” assures management
Geert Van Poelvoorde, the European director of ArcelorMittal, denies that formal decisions have already been taken regarding these projects. “Research into the decarbonization of our production continues. We are waiting to see what the new European Commission will decide, among other things on the carbon tax imposed on the steel sector.”
To meet European CO2 emission quotas, Arcelor Mittal intended to replace its current furnaces, which run on coal, with electric stovesand relied on the DRI installation, which could ultimately work with hydrogen. “This is precisely the shortcut to a mode of production that is more favorable to CO2 emissions,” emphasizes Frank Van Dorsselaer. ArcelorMittal thus intended to reduce emissions from its Ghent factory 3.9 million tonnes per year from 2030, for a total emission of 10 million tonnes of CO₂ per year.
“There is no business case for the project today.”
French competition and rising energy prices
But several doubts have since crept in. ArcelorMittal plans a similar project in the French city of Dunkirkfor which it will receive considerably larger subsidies. There rising energy prices also complicated the situation, recognizes ArcelorMittal. At the start of the year, the Federal government had nevertheless assured the group that it would benefit from nuclear energy at a reduced price.
“There is no business case for the project today”says Van Poelvoorde. “The new European Commission has promised to develop a steel action plan in its first hundred days, so by March. Europe must decide how much additional industry it needs. “
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What are the key challenges the ABVV-Metaal faces in light of the uncertainty surrounding ArcelorMittal’s investment plans?
**Interview with Frank Van Dorsselaer, Secretary of ABVV-Metaal**
**Editor:** Thank you for joining us today, Frank. The recent news regarding ArcelorMittal’s investment plans has raised concerns. Can you elaborate on the union’s position in light of these developments?
**Frank Van Dorsselaer:** Thank you for having me. Yes, the ABVV is quite alarmed about the uncertainty surrounding the two billion euro investment that was announced back in 2021. During a works council meeting on November 14, we were informed that the significant plans to green the steel production at the Ghent factory may not materialize as expected.
**Editor:** Can you specify what those plans entailed?
**Van Dorsselaer:** Certainly. The investment was intended for the installation of a Direct Reduced Iron (DRI) system and two electric blast furnaces. This technology was crucial for reducing CO2 emissions at the Ghent plant, which employs around 4,000 people. The objective was to cut emissions by 3.9 million tonnes per year by 2030.
**Editor:** What are the implications of stopping this investment?
**Van Dorsselaer:** If these plans are halted, we will face significant setbacks in our efforts to decarbonize our operations. The transition to more sustainable practices is essential not only for environmental compliance but also for the long-term viability of the plant. The delay in projects regarding CO2 storage and reuse is particularly concerning as well.
**Editor:** Management has stated that research into decarbonization will continue. Do you find that reassuring?
**Van Dorsselaer:** While it’s positive that research is ongoing, the uncertainty remains a major issue. We need clear commitment and timelines regarding these significant transformations. Without them, we are left hanging in a precarious situation.
**Editor:** What do you foresee happening next?
**Van Dorsselaer:** We are now waiting for the upcoming decisions from the new European Commission, particularly concerning the carbon tax on the steel sector. This will likely influence ArcelorMittal’s final decisions regarding the electric furnaces and the DRI installations, which we hope will be prioritized for the Ghent site.
**Editor:** Thank you for sharing your insights, Frank. It seems that the future of both the plant and its workers hangs in the balance.
**Van Dorsselaer:** Indeed, and we will continue to advocate for the interests of the workers and push for sustainable practices. Thank you for discussing this critical issue.
