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France seeks protection against Chinese steel imports following ArcelorMittal job losses

France seeks protection against Chinese steel imports following ArcelorMittal job losses

Sophie Primas, spokesperson for the French government, said that France and other European nations will push for measures protecting European steel against Chinese imports.

Primas responded to ArcelorMittal's announcement that it would eliminate 600 jobs at seven French sites because of the crisis in Europe’s steel industry.

Prima told CNews/Europe1 that "we have taken some initial steps, particularly on the issue of quotas as well as the introduction of Chinese Steel Quotas. But we must go even further, and France is leading the way."

Steelmakers in Europe are being hit hard by the high cost of energy and cheap imports from China. Steelmakers in Europe are also facing higher tariffs for exports to the United States.

Primas stated that the overproduction of Chinese steel is partly responsible for the decreased competitiveness of Europe’s steel industry.

In a Wednesday statement to its Works Council, ArcelorMittal France North stated that it had "implemented the best short-term adaption measures but now the company must consider reorganisation to adapt its business in the new market context to ensure its competitiveness and future".

Arcelor follows Tata Steel's announcement earlier this month that it would eliminate around 20% of jobs at its massive plant in The Netherlands.

ArcelorMittal has been criticized for its job cuts. The steelmaker received subsidies from the French government as part of a drive to reindustrialise parts of France.

"We fought hard for the funding of decarbonisation, which is crucial to ArcelorMittal", said Xavier Bertrand. The president of Hauts de France - a region that houses several sites that are affected by job cuts - Xavier Bertrand.

He said this in a blog post on X. (Reporting and editing by Bart Meijer, Gareth Jones and Makini Brice)

(source: Reuters)