By 2024, 's Belval plant will be equipped with a new electric arc furnace that will improve energy efficiency and increase production capacity by 15% to 2.5 million tonnes of steel per year. Subsequently, ArcelorMittal will implement new technologies to replace the natural gas used in reheating furnaces at the group's four rolling mills in Luxembourg with alternative energy resources such as green hydrogen. A new degassing installation and a modernisation of the continuous casting process will also be carried out. This investment will cost around €100m.
Read also
The ministry of the economy will take its share via aid mechanisms linked to environmental projects and research and development projects. "The ministry of the economy is pleased to be associated with the ambitious objectives of ArcelorMittal's zero CO2 emission roadmap in Luxembourg, which will contribute to the objectives that Europe has set itself to address the climate crisis," said economy minister (LSAP), shortly before signing the MoU with , vice-president of ArcelorMittal and managing director of ArcelorMittal Europe. "The investments planned through the various projects are in line with the government's priorities for climate transition and represent an important opportunity not only for the environment, but also for strengthening Luxembourg's reputation as a renowned industrial site at the forefront of innovation.”
A second investment of €30m will enable ArcelorMittal to make its Bissen site the first carbon-neutral site of the WireSolutions division. To this end, the wire drawing and galvanisation lines will be modernised. This is a nice result for a site that almost left the fold of ArcelorMittal in 2016 to be bought by the American hedge fund Oaktree Capital, which specialises in buying and selling distressed companies..
Relocating the research centre to Belval
At the same time, the steel group announced its intention to strengthen its research centre in Esch-sur-Alzette. ArcelorMittal plans to relocate the group's second largest research centre in Europe, which is celebrating its 50th anniversary, to Belval. The aim is to bring it closer to its facilities, but also to consolidate links with places of learning such as the University of Luxembourg and the Luxembourg Institute of Science and Technology (List).
In the long term, the ambition of ArcelorMittal's Luxembourg management is to be ahead of the steel giant's objectives, namely a 25% reduction in its CO2 emissions worldwide and a 35% reduction in Europe by 2030 in order to achieve carbon neutrality by 2050.
This total investment of €130m to reduce the steelmaker's CO2 emissions is in addition to the investments planned in the LUX 2025 tripartite agreement as well as the recurring annual maintenance investments. The agreement provides for the erasure of 536 posts by 2026, together with a commitment to invest between €165m and €205m in all its Luxembourg sites over the same period, particularly in maintenance and equipment renewal.
Green Steel transition should recognise the efforts of workers: LCGB
“For the LCGB, the wealth produced by the Luxembourg steel industry must be redistributed through these technological developments, but above all by recognising the true value of the skills and commitment of the employees who have made it possible to achieve these performances,” the trade union stated in a press release on 28 September.
While the union says it is “reassured” and “welcomes the decision by ArcelorMittal to use the new ‘Green Steel’ technology”, it plans to meet with the company’s directors. The aim: to find out more about the investments and new technologies, and how they will impact the workforce and operation of the Luxembourg sites.
The union also underlines the positive results and evolution of the steel industry in Luxembourg, asking that workers should also see their contribution to the success of the LUX2025 tripartite recognised and rewarded. Negotiations will take place in October, during which the LCGB says it hopes to see a gesture made towards employees.
This story was first published in French on . It has been translated and edited for Delano. Additional reporting by Tracy Heindrichs.