VZCZCXRO3449
OO RUEHIK RUEHPOD RUEHYG
DE RUEHLE #0130 1331532
ZNR UUUUU ZZH
O 131532Z MAY 09 ZFR
FM AMEMBASSY LUXEMBOURG
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6605
INFO RUEHZG/NATO EU COLLECTIVE

UNCLAS LUXEMBOURG 000130 
 
CANCEL TELEGRAM- DUPLICATE OF LUXEMBOURG 129 
 
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