FRANCE'' lower house of parliament voted late Thursday to nationalise ArcelorMittal France, the country's largest steelmaker, despite opposition from the government and an expected rejection in the Senate.
The proposal was put forward by far-left parties in the National Assembly to counter ArcelorMittal's plans to cut jobs. The company announced cost-cutting measures in Europe this year that are expected to lead to around 270 job losses in France.
Far-left lawmakers said nationalisation is the only option to protect the company and its 15,000 jobs in France. Other leftist parties backed the proposal, the far right abstained, and parties supporting the minority government voted against it.
The Senate, dominated by centrist and centre-right groups, is widely expected to reject the bill despite divisions in the lower house.
Economy Minister Roland Lescure said on social media Monday that the vote was a "populist response to a structural problem". Industry Minister Sebastien Martin said the law "would weaken employment instead of protecting it", adding that the threat to the company comes from a "tsunami" of Asian imports that must be addressed at the European level.
China produced one billion tons of steel last year, more than half of global output, followed by India at 150 million, Japan at 84 million and the United States at 79 million, according to the World Steel industry organisation.
Europe remains behind, with production of 37 million tons in Germany, 20 million in Italy, 12 million in Spain and 11 million in France.
(With inputs from agencies)
