In a high‑profile visit to the ArcelorMittal plant in Dunkirk, the French president underscored the steelmaker’s commitment to modernising France’s heavy industry. The company unveiled plans for the continent’s largest electric furnace – a €1.3 billion investment that will replace a traditional blast furnace and help decarbonise steel production.
The new electric furnace, capable of feeding two million tonnes of steel per year, is slated to start operating around 2029. Its construction marks a decisive step for ArcelorMittal after months of hesitation over the project, which is crucial for the long‑term viability of the European steel chain.
Speaking in front of workers, Reiner Blaschek, ArcelorMittal’s European CEO, highlighted the firm’s “commitment to France and Europe.” President Macron, wearing protective gear, urged the company to see the initiative through, to add a second furnace, and to continue pioneering hydrogen‑based steelmaking at the group’s Fos‑sur‑Mer facility.
Why an electric furnace matters
Electric steelmaking eliminates the need for coal‑fired blast furnaces, dramatically cutting CO₂ emissions. The draft furnace will sit alongside a direct‑reduction unit that can run on green hydrogen, further reducing the carbon footprint of the plant’s output.
Half of the financing will flow from the French Energy‑Saving Certificates (CEE) scheme, a state‑backed mechanism that obliges energy suppliers to fund projects that lower national energy consumption. Economy Minister Roland Lescure described the support as “money well spent” for the future of French and European industry.
Challenges and expectations
The original €1.8 billion decarbonisation plan announced in early 2024 called for two electric furnaces and a hydrogen‑compatible reduction unit. Rising competition from Chinese steel producers and volatile energy prices have delayed full implementation, prompting concerns that ArcelorMittal could scale back its European footprint.
CGT delegate Gaétan Lecocq called the announcement a “glass half full,” noting that a single furnace will not halt potential job losses or plant relocations. He pressed the company for a firm construction schedule, ideally beginning in April, and for clearer guarantees on employment levels and skill requirements.
Dunkirk employs roughly 3 200 people and produces about 5.5 million tonnes of steel annually, making it one of France’s 50 most carbon‑intensive industrial sites. ArcelorMittal’s CEO, Aditya Mittal, thanked the French government for its backing of market‑defence mechanisms that benefit the broader European steel sector.
Despite a net profit of over $3 billion in 2025, the group is reshaping its support functions in France, a move that will cut around 600 jobs. At the same time, ArcelorMittal has invested €500 million to launch three highly magnetic steel production lines aimed at electric‑vehicle motor manufacturing.
Overall, the company says it has committed roughly €2 billion to its Dunkirk operations over the past two years, while keeping its French workforce stable at about 15 400 employees.
Left‑wing politicians continue to push a parliamentary bill to nationalise ArcelorMittal’s French arm, a proposal now heading to the Senate for review.
After Dunkirk, President Macron will travel to an EU industry summit in Antwerp and then attend an informal gathering of European leaders in Brussels, where discussions on strengthening continental industrial independence will dominate the agenda.