French Prime Minister Mr. Jean-Marc Ayrault and steel giant Arcelor Mittal have finally reached a deal on Friday over a threatened steel plant. The announcements of the same are coming from the prime minister, who said in his recent statements that the deal has saved part of a massive plant that had been threatened with closure before the deal.

But it seems that the decision is not liked by the unions at the plant as they have criticized the deal describing it as a betrayal by the government adding that they had backed down on a threat to nationalize.

Statements coming from Mr. Ayrault have confirmed that ArcelorMittal will be investing at least 180 million Euros ($234 million) over the next five years in the endangered Florange site in northeastern France. Also, he said that the commitment made by the company to the region will not see any of the money invested in Florange becoming at the expense of its other sites running in France.

Since the demand of steel has somewhat dropped recently, the company decided to close two of the blast furnaces. The agreement was finalized between the minister and the company on Fridayand that too after spending three days over tensed negotiations.

"The government has thus shown the capacity for state intervention to bring about positive solutions for jobs, investments and future industrial projects" in a troubled sector, Mr. Ayrault added.