Thursday, September 29, 2011

ArcelorMittal Closes Two Mills in Luxembourg



We were writing 1974. About 1/3 of Luxembourg's workforce was cooking steel. Luxembourg produced 21 tons of steel per capita, followed by Germany with 2.5 tons. That's the weight the steel industry mustered then. In 1975 the steel industry came crashing down in a fast and scary way, under the double action of slowing demand and the competition of emerging steel producers.

What is left of the former ARBED is under new ownership, ArcelorMittal. It still employs about 6,000, quite a number for Luxembourg. This closing targets about 10% of them. In the present setup, who will come up with an innovative solution? Globalism takes away the cake from those who have the cake. How desirable is it? Pursue it at any price? The only barriers to globalism were the borders. They tend to disappear. Everyone seems to want it. It is an excellent deal when you had no cake. The new countries are the multinational companies who now can play the best options.
What is safe at ArcelorMittal Luxembourg? What cannot be easily done elsewhere.
ArcelorMittal Closes Two Mills

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