ArcelorMittal Ghent
Encyclopedia
ArcelorMittal Ghent is a Belgian steelworks situated in Zelzate
Zelzate
Zelzate is a municipality located in the Belgian province of East Flanders. The municipality only comprises the town of Zelzate proper. On January 1, 2006 Zelzate had a total population of 12,176. The total area is 13.71 km² which gives a population density of 888 inhabitants per km².Zelzate is...

 nr. Ghent
Ghent
Ghent is a city and a municipality located in the Flemish region of Belgium. It is the capital and biggest city of the East Flanders province. The city started as a settlement at the confluence of the Rivers Scheldt and Lys and in the Middle Ages became one of the largest and richest cities of...

, Flanders
Flanders
Flanders is the community of the Flemings but also one of the institutions in Belgium, and a geographical region located in parts of present-day Belgium, France and the Netherlands. "Flanders" can also refer to the northern part of Belgium that contains Brussels, Bruges, Ghent and Antwerp...

. It was founded in 1962 by ARBED
Arbed
ARBED was a major Luxembourg-based steel and iron producing company. Created in 1911 after the merger of three steel producing companies, ARBED was a major actor in the economic history of the Grand-Duchy until it merged in 2002 with two other European steel companies to create Arcelor.- Origins ...

 as Sidmar; the first maritime steel producer in Belgium.

Background

Traditionally the steelworks of Belgium had been concentrated in the southern half of the country, in Wallonia, close to the historic coal mining areas at the edge of the Rhenish Massif; which in part defined the area that came to be known as the Sillon industriel
Sillon industriel
The sillon industriel is the former industrial backbone of Wallonia and thus of Belgium. It runs across Wallonia, passing from Dour, in Borinage, in the west, to Verviers in the east, through Mons, La Louvière, Charleroi, Namur, Huy, and Liège, following the valleys of the rivers Haine, Sambre,...

 including the regions of Liege
Liège (province)
Liège is the easternmost province of Belgium and belongs to the Walloon Region. It is an area of French and German ethnicity. It borders on the Netherlands, Germany, Luxembourg, and in Belgium the provinces of Luxembourg, Namur, Walloon Brabant , and those of Flemish Brabant and Limburg . Its...

 and Hainaut.

In the 1920s the Luxembourg based steel company ARBED
Arbed
ARBED was a major Luxembourg-based steel and iron producing company. Created in 1911 after the merger of three steel producing companies, ARBED was a major actor in the economic history of the Grand-Duchy until it merged in 2002 with two other European steel companies to create Arcelor.- Origins ...

 began buying land next to the Ghent–Terneuzen Canal, by 1932 the company had acquired 211 ha (2.1 km²) Economic depression in the 1930s, the second world war and its aftermath prevented plans for a new steel plant;. however by the 1950s the economic conditions had become favourable again, and the company began exploring the possibility of a plants' construction.

At the beginning of the 1960s prelimary work began towards the construction of a new plant; the canal was to be dredged to enable Panamax
Panamax
Panamax and New Panamax are popular terms for the size limits for ships traveling through the Panama Canal. Formally, the limits and requirements are published by the Panama Canal Authority titled "Vessel Requirements"...

 size ships to use the canal, Arbed's land holding increased to 211 ha (2.1 km²), and on 27 April 1962 the European Coal and Steel Community
European Coal and Steel Community
The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...

 approved the plants construction.. The company Siderurgie Maritime NV (Sidmar) was formed on 10 July 1962, with a capital of 4.5billion Belgian franc
Belgian franc
The franc was the currency of Belgium until 2002 when the euro was introduced into circulation. It was subdivided into centimes , 100 centiem or Centime .-History:...

, of which 2bn came from Arbed, as well as 1bn from Cockerill-Sambre
Cockerill-Sambre
Cockerill-Sambre was a group of Belgian steel manufacturers headquartered in Seraing , on the Meuse River, and in Charleroi, on the shore of the Sambre River....

. Schneider
Schneider
Schneider is a surname, common in Germany, it may also refer to:Companies and organizations* G. Schneider & Sohn, Bavarian brewery company* Schneider Rundfunkwerke AG, former owner of the Dual brand record players...

, the Société Générale de Belgique
Société Générale de Belgique
The Société Générale de Belgique was one of the largest companies that ever existed in Belgium. It was founded in 1822 by William I, and existed until 2003, when its then sole shareholder, Suez Lyonnaise des Eaux, merged it with Tractebel to form Suez-Tractebel.-History:As part of the terms of the...

, Compagnie Belge de Participations (COBEPA) and Compagnie Financière et Industrielle (COFININDUS) also backed the scheme, and loans were got from state banks.

Amongst the steelworkers of the Walloon region the development was not so well received; in May 1960 union leader André Renaud declared it to be:
"la guillotine de la Wallonie"

Sidmar

Construction began in 1964, with a cold rolling mill completed in March 1966, and a hot rolling operational by the end of that year, the first blast furnace in 1967 and a second in 1968. Expansion continued in the early 1970s with a coking factory and second cold rolling mill.

The 1973–75 recession
1973–75 recession
The 1973–75 recession in the United States or 1970s recession was a period of economic stagnation in much of the Western world during the 1970s, putting an end to the general post-World War II economic boom. It differed from many previous recessions as being a stagflation, where high unemployment...

 caused a crisis in the global steel market
Steel crisis
The steel crisis was a recession in the global steel market during the 1970s recession, following the end of the post-World War II economic boom and the 1973 oil crisis....

 in the mid 1970s. Though the company fared better than the southern Belgian steel producers, investors other than Arbed disposed of their shares; Cockerill sold its 21.9 share to Arbed in 1975 due to its own financial problems, giving Arbed, which had previously increased its holding to 62.2% by 1973 a large majority shareholding of over 80%.

By the beginning of the 1980s some re-investment and expansion started again; a continuous rolling mill in 1981, as well as acquiring stakes in ALZ
ALZ (steelworks)
ALZ is a stainless steel producer based in Genk nr. Limbourg in Flanders, Belgium.In 2001 the company was merged with French stainless steel producer Ugine and in 2006 became part of the ArcelorMittal group as part of the stainless steel division.-History:ALZ was founded as a vertically integrated...

, and Klöckner
Klöckner
Klöckner & Co. is a German metal handler headquartered in Duisburg. Europe's largest independent distributor of steel, it is a leading supplier to the European and North American markets....

. In 1989 Sidmar's steel capacity represented 30% of total Belgian steel production. By 1994 Sidmar had majority share ownership of Klöckner which was renamed Stahlwerke Bremen. Further investment in the 1990s and 2000s gave the plant galvanising facilities and later the ability to continuous cast
Continuous casting
Continuous casting, also called strand casting, is the process whereby molten metal is solidified into a "semifinished" billet, bloom, or slab for subsequent rolling in the finishing mills. Prior to the introduction of continuous casting in the 1950s, steel was poured into stationary molds to form...

 slab steel, as well as blast furnace expansion.

In 2002, as part of Arbed
Arbed
ARBED was a major Luxembourg-based steel and iron producing company. Created in 1911 after the merger of three steel producing companies, ARBED was a major actor in the economic history of the Grand-Duchy until it merged in 2002 with two other European steel companies to create Arcelor.- Origins ...

 the company became part of Arcelor
Arcelor
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004...

, and was renamed Arcelor Ghent in 2006.

ArcelorMittal Ghent

Under ArcelorMittal ownership production continued, as Arcelor Mittal Ghent. The company produces ~5million tonnes pa of flat steel, with automotive manufacturers being a major source of custom. Flat steel is produced as hot or electrolytically galvanised, and plastic coated steel. The plant produces steel from ore, and has coking plants, sinter plants (blast furnace feedstock production), blast furnaces of total capacity over 4million tonnes pa, and hot and cold rolling facilities.

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