MT - ArcelorMittal launches furlough program for Spain workers as steel demand drops

ArcelorMittal ( NYSE: MT ) said Tuesday it has implemented a temporary layoff program for its Spain workforce of 8,300, citing reduced plant activity due to weak demand for steel.

The layoff agreement will last until the end of this year, an ArcelorMittal ( MT ) spokesperson told Dow Jones Newswires.

Workers downstream of the company's idled blast furnace in Asturias in northern Spain will have working hours cut by 25% on average, which the Aviles steel works, hot strip mill and cold rolling mills will be the most affected.

The move comes as Europe's largest steel company has idled blast furnaces in Spain, Germany and Poland because of reduced demand.

ArcelorMittal ( MT ) shares have jumped more than 11% in two days, as steel companies post broad gains.

ArcelorMittal's ( MT ) "strong balance sheet allows for opportunistic M&A," The Investment Doctor writes in an analysis published on Seeking Alpha .

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