Brussels, 19/04/2001 (Agence Europe) - Thanks to the exceptional properties of steel and the taking into account of environment-friendly new technologies, "the European steel industry is well equipped to meet the challenges of the 21st century. However, the EU market will come under strain. It is already clear today that increasing globalisation will result in ever-louder calls for protectionist measures to bolster up uncompetitive industries, and trade conflicts in the steel market cannot be ruled out. Also, following enlargement, the EU will have to cope with considerable social consequences in the applicant countries". These are the main conclusions reached by the Declaration of the ECSC Consultative Committee, adopted on 5 April, on the role of steel in Europe at the beginning of the 21st century. (See EUROPE of 18 April, p.7, on the subject of the 50th anniversary of ECSC).
Given that European companies operate in the context of a global market and that the Commission intends to abolish all customs duties on steel imports by 2004, "it is of vital importance that all parties stick to the WTO rules in order to avoid any distortion of competition", adds the ECSC. The ECSC Consultative Committee, which acknowledges the fact that it will soon no longer be able to follow these developments when the ECSC Treaty expires on 23 July 2002, also stresses that the coal and steel experts must "find an appropriate platform for dialogue with the Commission". The Committee therefore approves the Commission's suggestion that "the experience vested in the ECSC Consultative Committee be brought into the Economic and Social Committee in 2002".
The ECSC Declaration comprises four sections on:
Meeting consumer requirements. The technical improvements and new quality standards have entailed a reduction in the proportion of steel in finished products. For example, some 7000 tonnes of steel were required to build the Eiffel Tower, whereas to achieve the same size and stability today only 2000 tonnes would be needed. Even if the EU has reached "high consumption level", maintaining that level means acquiring ever new consumer markets. Thus, for example, the steel and automobile industries have jointly developed new types of all-steel automobile fuel tanks allowing containment of fuel vapours dangerous for health and the environment. In house building, moreover, several new applications, such as stainless steel and coated cold-rolled sheet have begun to be put into practice. In addition, the seawater desalination plants for combating the world-wide shortage of drinking water can now be built with new thin-walled laser-beam-welded tubes of high-grade steel. The Committee also stresses that research and development is indispensable to ensure competitiveness of the sector.
Growth and employment. The total value of the ECSC steel industry is currently estimated at EUR 80-90 billion. This industry employs 290,000 persons and contributes to the global competitiveness of a wide range of metal-based industries. Most of the 1 800 European stockholders and steel service centres are small and medium-sized enterprises, with about 3 000 installations throughout Europe. Growth of the steel industry depends on the presence of young well qualified engineers and highly qualified operators, notes the declaration.
Sustainable development. The ECSC stresses that the steel producers are firmly in favour of a policy of sustainable development, which they have incorporated into their business strategies. On the basis of the Community Environmental Management and Audit Scheme (EMAS), steel producers have formulated action programmes in keeping with the following main aims: - minimising the use of natural resources (50% of steel is produced from recycled scrap, both in electric steel production and in integrated pig iron plants; steel is today the recyclable material par excellence with 400 million tonnes of steel recycled each year); - saving energy (energy, up to 20%, and raw material, also 20%, represent on average 40% of the total cost of the product, and, over the past 25 years, energy consumption has been reduced by 40%); - reducing pollution (steel plants in the EU have cut back specific emissions of carbon dioxide (CO2) and Sulphur dioxide (S02) to the world's lowest levels; the setting in place of dust and fume extraction units has significantly reduced the discharge of solid substances into the atmosphere); - added value of by-products (waste is now used or sold as by-products and less than 5% goes to land-fill.).
EU enlargement. In Central and Eastern Europe, there is no correlation between production and consumption of steel, writes the ECSC Consultative Committee. The enormous production capacity contrasts with a limited consumption capacity. The crude steel production capacity of all applicant countries is about 45 million tonnes, with 27 million tonnes coming from plants in Poland and Romania.
In terms of competitiveness, the steel industry has a productivity problem. With 100 tonnes per man/year, the productivity of these countries lags far behind that of the EU (550 tonnes). The Consultative Committee states it is opposed to introducing transitional periods during their accession, in order to avoid all crises at the level of the internal market.
With approximately 140 million tonnes annually, that is 20% of world consumption, the EU is today the largest steel consumer, followed by China (130 million tonnes), the United States (120 million tonnes) and Japan (70 million tonnes). The strong demand on the European internal market results from efforts made by the European steel industry with a view to controlling production costs while at the same time improving quality and giving preference to an approach geared more towards the consumers. Steel is today the most important material in the world. World production is around 800 million tonnes annually (almost 30 times aluminium production and 5 times that of plastic).