Arcelor plans 30% cut in output

The firm will cut output by 30% in the fourth quarter

Arcelor Mittal, the world's largest steelmaker, is to cut output by 30% in the fourth quarter, twice the reduction previously planned.

The firm is putting growth plans on hold, as the global economic slowdown cuts demand for steel used by the construction and car sectors.

Arcelor Mittal also reported a 29% rise in third-quarter profits to $3.8bn (£2.4bn), below analysts' forecasts.

Following the news, shares in the firm fell 10% to 22.00 euros in Paris.

Chief executive Lakshi Mittal said that, while he was optimistic about the medium-term outlook, it was "appropriate to pause our growth strategy until we have a more settled economic outlook".

The company predicted that global demand for stainless steel would remain unchanged during 2009.

Arcelor Mittal also said that it was aiming to cut its debt burden by $10bn by the end of 2009. The company's debts stem from when the company was formed by the takeover of Arcelor by Mittal Steel in 2006.