This Article is From Jan 25, 2013

Lakshmi Mittal uses 'blackmail' and 'lies,' French minister charges

Lakshmi Mittal uses 'blackmail' and 'lies,' French minister charges
Paris:

France's minister for industrial recovery has accusedArcelorMittal chief Lakshmi Mittal of "blackmail" and"lies", after the giant steelmaker said it would close six facilitiesin neighbouring Belgium.

Speaking late Thursday on France 2 television, Arnaud Montebourg said: "Ihave to tell you that when he (Lakshmi Mittal) uses blackmail, lies ... that iswhat is happening in Belgium since he has announced that in the end he will nothonour his commitments."

Blaming weak demand for cars, ArcelorMittal said it would close sixcold-processing facilities in the Liege region of eastern Belgium, eliminating1,300 jobs. Angry employees burned tyres at the news while trade unions calledimmediately for a strike.

The company was already embroiled in controversy in France over the closure oftwo blast furnaces that sent tension between Mr Mittal and members of France'sgovernment soaring in late November.

Mr Montebourg, regarded as a protectionist by critics, told a French newspaperthen: "We don't want Mr Mittal in France anymore", before laterretracting his comments.

But on Thursday the minister said his remarks about the Indian steel tycoonwere nonetheless widely understood and "were thus possiblynecessary."
Mr Montebourg urged the European Commission to look into ArcelorMittal'sdecision to close the Belgian sites.

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