After ArcelorMittal announced nearly 600 job cuts at Gandrange, a site in the northeast of France, French President Nicolas Sarkozy summoned Laxmi Mittal to the Elysee palace in February this year. He promised the workers that he won't let them down. But Laxmi Mittal has decided to announce the job cuts anyway. Sarkozy whose popularity has been on the decline, now finds himself in a tight spot. 

"When Mr Mittal took Arcelor in 2006 he had announced to the world that it there would be no job losses. Everyone heard that and it reassured us at that time. Now less than 2 years later, he is shutting down this factory its nearly 600 direct jobs and double that number of indirect job losses," said Edouard Martin.

This will be a major setback for the precarious economy of the Lorraine region, which once was a prosperous industrial region and the pride of France. 

It’s a very sensitive issue because Lorraine is a terribly vulnerable area and Sarkozy needs to act and build this image of someone who can change things and who doesn’t believe that the state should be passive," added Eve Charrin, Business Analyst.

"I would ask Mr Mittal to please reconsider his decision. If the steel industry dies here, our Lorrain region dies," remarked Jottarde Olivo. He has been with the steel factory for the last 35 years.

Job cuts at the ArcelorMittal site have become symbolic of the industrial decline of the region. As for Laxmi Mittal, this is not the first time he is facing the hostility of the French establishment.