France's threat to nationalize a steel mill to prevent job losses is shaping up as a public relations disaster for the government -- with potential collateral damage to the European steel industry as well. Pres Francois Hollande's Socialist government says it may take temporary control of the Hayange-Florange plant in Lorraine to prevent its owner, ArcelorMittal, from eliminating about 630 of 2,700 jobs at the site. Nationalization of private companies was abandoned decades ago by most major economies -- including France, where it was last used by Socialist Pres Francois Mitterrand in the early 1980s. Its resurrection, along with the government's attacks on Mittal, aren't likely to help French efforts to reverse a slump in foreign investment. Underlying the Florange dispute is a big problem facing European steelmakers: Too much production capacity is chasing too few customers.