Open letter for the support of the steel industry

The owners of the largest European steel companies have asked for the support of the industry. In an open letter addressed to the heads of state and governments in Europe.

Among the signatories of the letter are the heads of Tata Steel, ArcelorMittal, ThyssenKrupp and Voestalpine. Together they used the letter to signal the fact that 320,000 jobs in the European steel industry are at risk if the necessary measures are not taken.

The open letter challenges EU leaders to „do what it takes to protect the steel sector”. And warns that action is needed on three key aspects. About this, the heads of the steel industry say that „it could destroy our industry”. Steel producers across Europe have been hit by a flood of cheap steel from China, high energy costs, and pressing environmental taxes.

The situation has led to massive redundancies in the UK steel sector in the last two years. Because the companies are unable to compete. Tata Steel is trying to sell important parts of its UK business.

What does the letter for the support of the European steel industry contain?

The 58 leaders who signed the letter say they want to see China’s market economy status revised, expressing concern about Beijing’s support for many of its steel producers.

Steel producers want the EU to copy America’s tough stance on the impact of steel imports from China, with tough trade tariffs.

„The EU trade protection instruments are very difficult to implement. In comparison with our commercial partners”. It was declared in the letter, adding that „their effectiveness … is uncertain. Determining measures that are significantly below the calculated dimension of dumping”.

Also, steel industry bosses say that the industry should not face environmental measures. Whose costs are „beyond economic and technological feasibility”.

However, the letter adds that a reformed EU Emissions Trading System (ETS) is needed that is fair and achievable, noting that foreign rivals do not face the same pressures.

Article source: http://www.telegraph.co.uk/business/2016/10/17/steel-industry-at-breaking-point-as-it-calls-for-europe-wide-hel/