ArcelorMittal announced higher investment levels for the current year, elevating planned outlays from 3,500 million to a range between 4,500 and 5,000 million for 2022. In 2023, the group earmarked around 400 million to advance its decarbonisation agenda at the Gijón site, featuring a shift from a traditional blast furnace to a direct iron ore reduction plant powered by green hydrogen, complemented by a hybrid arc furnace energized by renewable power. These moves underscore a broader strategy to modernize facilities and cut carbon across its European footprint while exploring greener production in other regions.
The Asturias project is set to drive total investments exceeding 1 billion euros, with more than half anticipated to come from public support. Beyond Asturias, ArcelorMittal has outlined plans to initiate green steel projects in Germany, France, Belgium, and Canada. Company sources indicate that these initiatives are structured over a five-year horizon, with a 400 million euro allocation in 2023 contingent on project progression and regulatory approvals. At present, Asturias awaits clearance from the European Commission regarding state aid. The labor union UGT-FICA has urged the company’s investment committee to approve the Gijón decarbonisation roadmap, emphasizing the importance of clear governance and timely decisions as results from the Asturias program are presented as part of the group’s broader European decarbonisation push.
Amid the broader European operating environment, ArcelorMittal waited for signs of a rebound in the global steel market. The firm had implemented production adjustments in recent months, including the temporary shutdown of one of the two blast furnaces in Gijón for more than four months, as part of capacity alignment with demand and energy considerations. These actions reflect the company’s approach to balancing supply discipline with long-run asset optimization.
In 2022, the steel giant reported a decline in profits, driven largely by weaker market conditions toward the year’s end and the idling of several major facilities. Despite a year-over-year profit drop, the company still posted a substantial overall profit tally for the year, aided by favorable pricing in some markets and a solid revenue performance. Sales rose modestly, supported by higher unit prices, while EBITDA decreased as operating margins contracted. These dynamics illustrate the tension between buoyant market price environments and the need to manage cost structures and capacity in a volatile market. Market commentary from leadership highlighted the resilience of the asset portfolio and the ongoing work to optimize energy use and production cost structures, aiming to preserve cash flow quality and sustain long-run strategy.
The CEO noted that, despite challenges, the company’s strengthened balance sheet and continued positive cash generation underpin a plan for sustainable growth and profitability. The analysis pointed to a still uncertain macro backdrop, including geopolitical tensions, but emphasized that customer inventory adjustments during the second half of 2022 could support higher consumption and product margins into 2023. The leadership underscored the central role of decarbonisation and portfolio optimization in enhancing resilience and delivering value across cycles, with confidence that the group could advance its growth program while maintaining a focus on energy efficiency and cost discipline.
Following the earnings release, labor representatives pressed for negotiation on wage terms within Spain’s VIII Framework Agreement, seeking to restore purchasing power after a period of frozen salaries. The CC OO general secretary highlighted the need for a salary review and warned of potential mobilizations if the company does not engage on compensation. UGT-FICA welcomed the improvement in Asturias following the restart of blast furnace A in Gijón, signaling that rising production could complicate any immediate return to previous employment protections. In short, the 2022 results catalyzed a renewed dialogue around fair compensation, workforce stability, and the pace of plant modernization as the group advances its decarbonisation agenda.