Steel Giant ArcelorMittal Mulls India Shift Amidst European Headwinds
New Delhi, India - ArcelorMittal, the world's second-largest steelmaker, is exploring the possibility of relocating some of its European business support operations to India. The move comes as the region's steel sector grapples with high production costs and heightened import competition.
Industry Under Strain
Europe's steel industry has faced significant challenges in recent years, including oversupply from China and the imposition of 25% tariffs on steel and aluminum imports by the United States. India, on the other hand, is considered a potential opportunity to reduce costs and gain tariff concessions.
Business Process Optimization
ArcelorMittal plans to expand its business services hub in India and centralize certain support functions. This initiative aims to streamline operations and align with industry trends. The company emphasized that no steel manufacturing will be transferred from Europe.
Ongoing Transformation
ArcelorMittal's European unit is intensifying efforts to cut non-production costs. The company's spokesperson indicated that specific functions and potential job impacts are yet to be determined.
EU Safeguard Measures
Eurofer, the main steel industry group in Europe, has requested a 50% reduction in steel import quotas under the EU's safeguard system to protect the industry from excessive imports.