The United Steelworkers union is asking ArcelorMittal to invest in its U.S. facilities, but the multinational company has been pursuing capital projects in other countries instead.
The Luxembourg-based steelmaker has been investing in North America, just not in the United States. ArcelorMittal, which has operations in 60 countries worldwide, is pumping nearly $40 million into upgraded operations in Mexico and Canada, where it just donated more than 500 tons of steel for a public sculpture that pays tribute to a local union leader.
Last week, ArcelorMittal announced a $27 million investment in the Longueuil bar mill in Montreal, where it will boost the finishing line's capacity to 500,000 metric tons per year, an increase of 20 percent. The company financed the project through its "global capital expenditure fund for strategic projects at its best-performing facilities."
"Approval of this investment is a mark of ArcelorMittal senior management's confidence in our business unit," ArcelorMittal Montreal Vice President of Operations Sujit Sanyal said. "Our company has a rich history in Longueuil and our recent decisions show that we are securely anchored here, both economically and culturally."
The Longueuil bar mill now converts 400,000 tons of steel billets into merchant quality bars and rebar for customers throughout North America. The facility is the world's largest supplier of steel for leaf springs in trucks. ArcelorMittal has invested $220 million in Quebec and Ontario since 2008. The steelmaker just installed a new reheat furnace at the bar mill two years ago, and expects to finish the latest upgrade in Montreal by 2017.
"This is a direct consequence of ongoing improvements in health and safety, quality, productivity and profitability, as well as our good labor relations," Longueuil Plant Manager Luc Lacerte said. "These factors have contributed to our past success and are more than ever necessary if we are to continue to stand out from the crowd."
Last last month, ArcelorMittal also announced it would invest more than $11.1 million in a tubular facility in Monterrey, Mexico, where it plans to build a fourth tube mill to serve the North American auto market. The steelmaker will hire 80 more workers and also add processing equipment to make tubes that are used for automotive seats and head rests.
The mill in Mexico already makes tubes that are used in drive shafts, rounds and specialized shapes for automakers.
"ArcelorMittal has enjoyed a strong position in supplying tubes to the Mexico region since 2000," ArcelorMittal Tubular Products Chief Executive Officer Ed Vore said.
"This latest investment in new equipment and our people is consistent with ArcelorMittal's aim to further grow our footprint and leadership position in the automotive sector – a market that continues to show remarkable growth, both in Mexico and the southeastern United States."
The USW asked the steelmaker during negotiations earlier this week to invest in its U.S. facilities, which include mills in East Chicago and Burns Harbor, and finishing operations in Gary and Riverdale. The union wants to both make the company more competitive and ensure job security for its members.
"Each of our local union delegations brought specific requests for equipment and infrastructure upgrades to the table to discuss with management," the USW said in an update to members.
"While the company generally recognized that many of these projects would benefit the company over the long term, it is unclear how willing ArcelorMittal is to commit money to our plans."