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ArcelorMittal (AS:MT), the world’s largest steelmaker, is cutting steel production across its European plants to cope with weak demand and rising imports.
The company will reduce primary steelmaking production in Dunkirk, France and Eisenhuettenstadt, Germany, according to a statement on Wednesday. It will also cut primary steelmaking production in Bremen, Germany and extend a stoppage planned in Asturias, Spain in the fourth quarter.
“This is again a hard decision for us to have taken but given the level of weakness in the market, we feel it is the prudent course of action," said Geert van Poelvoorde, the chief executive officer for the company’s flat products division in Europe. "This will be a temporary measure that will be reversed when market conditions improve."
European steelmakers have been feeling the pinch as demand contracts, especially from the auto sector, and countries such as Turkey export record amounts into the region. Earlier this month, regional lobby group Eurofer warned the industry is on the cusp of a crisis.