Belgium Doubles Subsidy in Bid to Keep ArcelorMittal Steelworks

In an escalating subsidy war with France, the Flemish government has doubled its financial support to €600 million for ArcelorMittal to decarbonise its Ghent steelworks. This move aims to keep the steel giant's investment within Belgium and secure thousands of jobs.

The company faces a significant investment of over a billion euros to achieve carbon neutrality by 2050. While the French government has offered similar financial incentives and cheaper electricity to attract investment to Dunkirk, Belgium is determined to stay competitive.

The increased subsidy from the Flemish government has already yielded positive results, with ArcelorMittal announcing the commissioning of an experimental carbon capture unit on its Ghent blast furnace. Additionally, a non-binding agreement is set to be signed between the government and ArcelorMittal, outlining shared objectives related to decarbonisation and energy pricing.

The final decision on where ArcelorMittal will invest is expected to be made in September. The outcome of this subsidy war will not only impact the future of the Ghent steelworks but also have broader implications for the Belgian and French economies.