Threats by the French government to nationalize a
steelworks belonging to ArcelorMittal hung over planned talks Tuesday
between French President Francois Hollande and Lakshmi Mittal,
founder of the world's largest steel producer.
Mittal has been summoned for talks Tuesday evening over the future
of the plant at Florange, in the north-east of France, where
ArcelorMittal has announced the closure of two blast furnaces.
Citing falling demand for steel in Europe the company in October
announced the closure of the furnaces, which employ 629 people, but
said it planned to continue downstream (processing) activities at the
site.
The government says the company's refusal to sell the entire site
is thwarting its attempts to find a buyer for the furnaces.
Industrial Recovery Minister Arnaud Montebourg told Les Echos
newspaper in an interview Monday that the government was considering
nationalizing the site on a temporary basis until a new partner could
take over. He said two companies had expressed interest in acquiring
the entire site.
ArcelorMittal has warned that selling the entire site would
threaten the group's presence in France, where it employs 20,000
people.
As tensions mount ahead of a December 1 deadline for a solution
Montebourg has hardened his tone against the steelmaker.
"We no longer want ArcelorMittal in France because they didn't
respect France," the minister told Les Echos, accusing the group of
"lies."
The Mittal family expressed shock over the remarks, which come as
Hollande's Socialist administration attempts to shed a reputation of
being anti-business caused by previous attacks by Montebourg on
business leaders.
London Mayor Boris Johnson, who is currently on a tour of India,
seized on the comments to urge Indian investors to choose London over
Paris.
Referring to a radical faction in the 1789-1799 French Revolution
Johnson said the "sans-culottes appear to have captured the
government in Paris" and offered: "Venez a Londres, mes amis' (Come
to London, my friends).
