ArcelorMittal To Shut Down Montreal Plant On June 30

[mtlurb]

ArcelorMittal To Shut Down Montreal Plant On June 30

 

 

March 26, 2008 12:21 p.m. EST

 

Montreal, Canada (AHN) - The largest steel manufacturer will shut down its wire factory in Montreal on June 30. Around 100 Canadian workers employed by ArcelorMittal at the Lachine plant are expected to lose their jobs.

 

ArcelorMittal said it had to close the Montreal facility because of high production cost, oversupply of products and the strong Canadian currency. The plant has 153 employees, but only 53 of the workers will be transferred to ArcelorMittal's steel wire mill at Saint Patrick.

 

Alain Robitaille, general manager of ArcelorMittal's wire division, said demand for steel wire among carmakers had declined in the U.S. over the past six years. At the same time, the Canadian dollar had appreciated vis-a-vis the greenback, making it more expensive for American buyers to purchase their steel requirements from Canada.

 

"ArcelorMittal cannot continue operating two wire mills in a context where it is more advisable to operate only one plant," Robitaille told the Associated Press.

 

On March 14, the company petitioned an Ontario court to require its partners in Wabush Mines to sell to the firm their majority share in an iron ore joint venture in Labrador and Quebec. Prior to ArcelorMittal's court petition, U.S. Steel Canada and Cleveland-Cliffs withdrew from negotiations with ArcelorMittal to sell their combined 71 percent share, but did not explain why.

http://www.allheadlinenews.com/articles/7010446071