French lawmakers vote to nationalise ArcelorMittal plants

French lawmakers have voted to nationalise the struggling local operations of steelmaker ArcelorMittal, in a symbolic motion opposed by the government and unlikely to take effect, but which reflects growing concern for the sector in Europe. 

The group’s foundries and other factories in France, where it employs roughly 15,000 people, have been badly hit by weak demand, competition from cheaper Chinese imports and the tariff rows between the US and Europe. ArcelorMittal, Europe’s largest steel producer, is also grappling with the pressure to invest in lowering carbon emissions from its operations. 

The far-left La France Insoumise party put forward a motion to nationalise the Luxembourg-based company’s French operations for an estimated cost of €3bn.

The proposal was carried in a late-night vote in parliament thanks to support from other leftwing parties, with 127 votes in favour and 41 against, including opposition from lawmakers from President Emmanuel Macron’s centrist party.

Marine Le Pen’s far-right parliamentarians abstained, while many other lawmakers were absent in the 577-strong lower house, at a time when the fractured parliament is also wrangling over a budget for 2026. 

Unions claim partial victory

The nationalisation is unlikely to be carried out given government opposition and the need for it to be approved by France’s conservative-led Senate.

But some trade unions, including the far-left CGT, which supports a state takeover, claimed a partial victory in bringing employee concerns about job cuts and the sector’s slump to the fore.

“There is a growing awareness in France and among politicians that we need to save the French steel industry,” CGT representative Reynald Quaegebeur told France Inter radio on Friday.

French finance minister Roland Lescure said the “opportunist” motion to nationalise the ArcelorMittal assets would “not in any way fix the unfair competition issues destabilising the company”.

Alain Le Grix de la Salle, chair of ArcelorMittal France, also opposed taking the company into state hands. “The nationalisation of ArcelorMittal would in no way resolve the challenges faced by the steel industry in France and Europe,” the group said in a statement on Friday.

It added: “Europe must defend its steel market and swiftly implement the trade defence measures announced in October, as well as an effective carbon border adjustment mechanism.”

Commission tariff proposals

The European Commission has proposed doubling tariffs on global steel imports from 25 to 50 per cent beyond a certain quota. It is also seeking talks with the US to lower its 50 per cent levies on some steel and aluminium products.

Last year the EU imported 28mn tonnes of steel, a quarter of the total sold there. 

The EU steel sector announced 18,000 job cuts in 2024, adding to the 90,000 job losses since 2008. Another 300,000 direct jobs and 2.3mn indirect jobs were at risk, according to Eurofer, the body that represents the industry.

ArcelorMittal’s global sales were down nearly 3 per cent in the first nine months of the year, to €46.4bn.

This year it abandoned plans to convert two German steel plants to green production and warned that it could close a flagship biofuels plant in Belgium in a blow to Europe’s plans to decarbonise its heavy industry.