French minister threatens to expel Arcelor Mittal

Discussion in 'Foreign Relations' started by Blackwater, Nov 27, 2012.

  1. Blackwater

    Blackwater Veteran Member Veteran Member

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    Arcelor Mittal is no longer welcome in France, its minister for industrial recovery, has said, accusing the steelmaker of "lying" and "disrespecting" the country.

    The multinational angered workers and the government when it announced a plan in October to close two furnaces at its steel plant in Florange.

    It gave the government a grace period of 60 days to look for a new owner.

    The Mittal family said they were "extremely shocked" by the comments.

    "We no longer want Arcelor Mittal in France because they didn't respect France," Arnaud Montebourg told French business daily Les Echos.

    'Mittal's fault'
    The minister, who previously opposed the closure of a Peugeot factory, accused the company of "overwhelming lies" and said the Florange closure breaks a promise made by chief executive Lakshmi Mittal during Mittal Steel's 26.9bn-euro (£21.8bn) takeover of Arcelor in 2006, which was strongly opposed by French ministers.

    The problem "isn't the furnaces in Florange, it's Mittal", said Mr Montebourg.

    Mr Mittal, the Indian-born chief executive, is expected to meet with President Francois Hollande on Tuesday to discuss the group's operations in France.

    The talks come ahead of a deadline on Saturday which Mr Mittal gave the state to find a buyer for the two idled blast furnaces in Florange, a traditional steel town in north-eastern France.

    The government says it has received two offers, but only for the entire site. Mr Mittal has refused to sell the full operation, which employs a total of 20,000 workers.

    Nationalisation?
    As a result, Mr Montebourg has said he is exploring how to seize the entire Florange site should Mr Mittal refuse his demands.

    According to the French newspaper, Mr Montebourg's idea "would be a partnership with a minor manufacturer, the time to stabilise activity" in Florange.

    Jean-Louis Borloo, a conservative politician and a former environment minister, also supported Mr Montebourg's efforts.

    "France's steel industry needs to live - there are 2,200 people on the site, 22,000 Arcelor Mittal employees in France and globally, there are 75,000 [employees involved in steel]," he told France Inter radio.

    "And the idea that the government, along with its sovereign wealth fund and partners like Eramet and Ascometal (mining and metallurgical groups), reflect upon a temporary state control... does not seem inappropriate."

    The Mittal family said they were "extremely shocked" by Mr Montebourg's attacks on the steelmaker.

    One person close to the group said: "These are pretty violent comments towards a group that employs 20,000 people in France."



    BBC News - French minister threatens to expel Arcelor Mittal
     
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  3. Blackwater

    Blackwater Veteran Member Veteran Member

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    Gore pagal ho gaye:taunt::taunt::taunt:
     
  4. Singh

    Singh Phat Cat Administrator

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    Arnaud Montebourg is testing Mittal ? :rofl: He'll fire all the 20,000 workers if need be.
     
    Patriot likes this.
  5. Singh

    Singh Phat Cat Administrator

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    French minister urges steel-maker ArcelorMittal to leave country | Business | guardian.co.uk
     
  6. The Messiah

    The Messiah Bow Before Me! Elite Member

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  7. Blackwater

    Blackwater Veteran Member Veteran Member

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    True ,Those Indians who used to clean their toilets and shoes now become their master, :laugh::laugh:

    how can gora tolerate???
     
  8. JBH22

    JBH22 Senior Member Senior Member

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    this Arnaud Montebourg is a rather commie sympathiser the kinda of person who wants greater govt intervention in the economy.

    French cannot accept the lost diva glory
     
  9. Yusuf

    Yusuf GUARDIAN Administrator

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    Saar what do expect from a socialist government?
     
  10. drkrn

    drkrn Senior Member Senior Member

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    does this fit for obama too....
     
  11. Blackwater

    Blackwater Veteran Member Veteran Member

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    frankly yes. most of goras in USA not happy with obama.

    obama won because of woman,and non-whites votes
     
  12. Patriot

    Patriot Senior Member Senior Member

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    Mittal's next move should be takeover of Eramet and Ascometal to strengthen backward integration in their business.
     
  13. trackwhack

    trackwhack Tihar Jail Banned

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    Mittal does not have the cash for that. Steel makers are getting killed. China is stuck, which means China's industrial suppliers in Europe are all piled up with inventory thus drying up steel demand worldwide. Or so they say. We dont know what the real picture in China is. I suspect they are playing this one - in order to subjugate Europe economically before taking on the US. China has the money to simply buy all of Europe.
     
  14. JBH22

    JBH22 Senior Member Senior Member

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    sirji he's not typical socialist his ideas is more of lefty extremist,kinda of people who believe that the boss live to torture the employee
     
  15. pmaitra

    pmaitra Moderator Moderator

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    Boris Johnson tells Lakshmi Mittal 'if France doesn't want you, Britain does'

    Video and comments: Boris Johnson tells Lakshmi Mittal 'if France doesn't want you, Britain does' - Telegraph
     
  16. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    ArcelorMittal averts nationalisation

    Following discussions with the French Government ahead of a midnight deadline, ArcelorMittal has struck a deal over the future of two blast furnaces at its plant in north-eastern France, averting recent threats of temporary nationalisation.

    ArcelorMittal will invest €180 million (Rs 1,270 crore) in the Florange site over the next five years. Exactly where and how the investment will be made remains the subject of negotiations between ArcelorMittal and the government.

    While the furnaces, which were idled in June and October last year, will be closed, they would not be dismantled and will remain on the site.

    The agreement also involves no compulsory redundancies, with the company working with unions to find alternative roles for the 629 affected employees. “With regard to resolving the social aspects of this project, ArcelorMittal will not implement any social plan and an agreement will be negotiated with the trade unions on a voluntary basis,” the company said.

    “In the context of the current economic environment, this is a good agreement which will allow Florange downstream activities to pursue its development and to deliver value-added steels,” said Henri Blaffart, Vice-President of Flat Carbon Europe at ArcelorMittal.

    “The government decided against the idea of a temporary nationalisation that was floated in recent days,” French Prime Minister Jean-Marc Ayrault was quoted by Reuters as saying.

    Tensions mounted over the past few days following controversial comments by French Industry Minister Arnaud Montebourg, who told financial daily Les Echos earlier this week that the company had reneged on commitments it had made, and that the government would consider temporary nationalisation until a buyer could be found, to preserve the 629 jobs.

    While the threat provoked an outcry by those fearful that it would tarnish France’s image, few believed that the government would act on its threat, seeing it more as a response to public fears about mounting job losses in the country’s industrial heartland. “I think Hollande realises that nationalisation would be catastrophic for the country, and FDI,” IHS Global Insight analyst James Goundry said ahead of the announcement.

    During the merger, back in 2006, ArcelorMittal said it intended to continue with the restructuring plan being pursued by the previous owners, which would have resulted in the closure of the Florange blast furnaces.

    The company, subsequently, shelved the closure plans, but following further weakness in the market announced that it would idle the two blast furnaces last year. The company plans to keep the remainder of the site, employing some 2,000 people, as an automotive hub, and has rejected the French government’s calls that it consider sale of the entire site.

    Business Line : News / International : Deal struck: ArcelorMittal averts nationalisation
     

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