France announces plan to save steel site

(AP) France's prime minister says there will be no layoffs at a blast furnace site in northeast France and that owner, steel company ArcelorMittal, has promised to invest 180 million ($233.75 million).

Friday's announcement caps months of tension over the future of the site where the jobs of more than 600 people were at stake.

Jean-Marc Ayrault put to rest rumors the government would nationalize the site at Florange. Instead, he said in a televised announcement that ArcelorMittal had made an unconditional agreement to the site and that the government would keep watch for non-respect of the agreement.

The prime minister said the furnaces will be maintained while awaiting development there of a gas recycling project that would make the industry competitive.

Florange has not showed a loss, but hasn't performed like other ArcelorMittal sites.