ArcelorMittal, the world’s largest steelmaker, has decided to permanently shut down its blast furnace in Kraków, marking a symbolic end at what was previously Poland’s second-largest steelworks.
The decision will result in 650 workers losing their jobs, confirming fears expressed by unions last year. They have threatened to call a strike if ArcelorMittal does not revers the decision.
Production at the facility was already temporarily halted in May 2019, and in November ArcelorMittal began what it said at the time was a temporary shutdown of the blast furnace until market conditions improved.
The company provided a large part of its 1,200 workers with alternative jobs at its other facilities in Kraków and Dąbrowa Górnicza, where its two further blast furnaces in Poland are located. Many also took early retirement.
The head of the company’s supervisory board, Sanjay Samaddar, says the latest, final decision to permanently shut down the furnace was taken after the coronavirus pandemic exacerbated an existing crisis in Europe’s steelmaking industry.
“Although we have been observing a slight increase in demand for several weeks, mainly due to replenishment of stocks, the demand for steel is still significantly lower than before the pandemic,” said Samaddar, quoted by Gazeta Wyborcza. “This means that we have to make difficult decisions.”
