Identifier
Created
Classification
Origin
09LUXEMBOURG129
2009-05-13 15:32:00
UNCLASSIFIED
Embassy Luxembourg
Cable title:  

ARCELORMITTAL PROTESTS MAKE INTERNATIONAL HEADLINES

Tags:  PGOV PREL ECON ASEC LU 
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VZCZCXRO3444
OO RUEHIK RUEHPOD RUEHYG
DE RUEHLE #0129 1331532
ZNR UUUUU ZZH
O 131532Z MAY 09
FM AMEMBASSY LUXEMBOURG
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6604
INFO RUEHZG/NATO EU COLLECTIVE
UNCLAS LUXEMBOURG 000129 

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ASEC LU
SUBJECT: ARCELORMITTAL PROTESTS MAKE INTERNATIONAL HEADLINES

UNCLAS LUXEMBOURG 000129

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL ECON ASEC LU
SUBJECT: ARCELORMITTAL PROTESTS MAKE INTERNATIONAL HEADLINES


1. A major shareholders' meeting at ArcelorMittal's
Luxembourg headquarters was met with significant protests on
May 12. The May 13 editions of the International Herald
Tribune, Wall Street Journal Europe, and the Financial Times
all carried front-page, above-the-fold photos of the protest,
considered violent by Luxembourg standards. Press indicates
this protest was Luxembourg's most violent since the last
ArcelorMittal unrest, in 2003.


2. Grand Ducal police estimate 2,000 protesters, mostly
Belgian and French steelworkers bussed into the Grand Duchy,
spearheaded the protest, which clogged traffic throughout the
entire city for hours. Protesters hurled both firecrackers
and smoke bombs, as well as cobblestones and iron bars. A
small group of protesters attempted to break into the
headquarters building. Police spokesman Vic Reuter told the
press that the riot police responded by firing tear gas and
rubber bullets. Reuter reported one injured journalist and
one arrest. While the building sustained considerable
damage, the shareholders' meeting and lunch proceeded
uninterrupted. The company coordinated closely with the
police and, as the protest was announced beforehand, was
prepared. Our close contacts confirmed disruption inside the
building was minimal.


3. COMMENT: ArcelorMittal, the world's largest steel
company, is reeling in the economic crisis. The company has
announced close to 10,000 layoffs at numerous locations
around the world (including over 2,000 in the United States)
and cites reduced demand for its product as the key factor.
As most of the affected workers are not Luxembourg nationals,
it is doubtful the GoL will take much of the heat for
ArcelorMittal's personnel and production cuts, even with
elections pending in the next month. The steel conglomerate,
headed by the world's eighth richest man Lakshmi Mittal,
does, however, bring considerable prestige to Luxembourg as a
world financial center. The protests are an ugly mark on the
Grand Duchy and are not how Luxembourg wishes to be depicted
on the front page of major international papers.
WAGNER