ArcelorMittal Eyes Shifting European Support to India
By Anna Peverieri
(Reuters) - ArcelorMittal is considering a potential shift of some of its European business support activities to India, as the region’s steel sector faces pressure from high costs and rising imports, the world's second-largest steelmaker said on Tuesday.
The company, however, said no steel manufacturing would be moved to India from Europe.
Europe's steel industry has been struggling against oversupply from China and now - like other exporters - faces 25% tariffs on steel and aluminium imports U.S. President Donald Trump announced "without exceptions or exemptions" on Monday.
India, which Trump called a "very big abuser" on trade, is planning to offer tariff cuts in various sectors that could boost U.S. imports and gain tariff concessions, government officials said. Prime Minister Narendra Modi will be visiting the United States this month for talks with Trump.
"The steel industry in Europe is facing several major challenges which are threatening the future of steelmaking on the continent," ArceloMittal told Reuters in an emailed statement.
Outlining the plan to shift some support activities during a European works council meeting on Tuesday, it said it was studying the expansion of business services hub in India to centralise certain support functions. "The initiative is part of our ongoing efforts to optimize business processes and align with similar moves by companies across various industries," the group added.
ArcelorMittal's spokesperson told Reuters it was too early to provide details on which functions might be affected or the potential impact on jobs.
The company's European unit is stepping up efforts to cut non-production costs amid mounting pressure on the region's steel industry, already strained by China’s overcapacity. Europe's main steel industry group Eurofer has asked for a 50% cut in steel import quotas under the EU's safeguard system.
(Reporting by Anna Peverieri; Editing by Emelia Sithole-Matarise)
