Henrik Adam, Executive Chairman of Tata Steel Netherlands Holding BV, stressed the urgent need for Europe to reverse the ongoing trend towards deindustrialization at the 75th anniversary conference of EUROMETAL last week in Luxembourg, attended by Callanish.
Promoting technological innovation is crucial to maintaining and revitalizing the European industrial base. "In Europe, we are surviving in the face of global competition from low-cost countries receiving subsidies … We are not asking for protection, we are demanding fair playing conditions," Adams said.
He stressed the seriousness of the European steel crisis, when 26 million tons of steel production facilities were closed between 2008 and 2023, and 25% of the steel company's employees lost their jobs. An additional 18,000 jobs will be cut in 2024.
To remain competitive, Europe must strengthen trade protections against unfair practices, review and update its carbon emissions regulation mechanism (CBAM), address high energy costs, and improve scrap availability.
Access to abundant reserves of non-fossil fuel raw materials. electricity is very important. Energy demand in the steel sector, which averaged 75 TWh per year between 2010 and 2020, is projected to more than double to 165 TWh per year by 2030 and reach 400 TWh by 2050.
Reducing energy costs, increasing green subsidies, and reliable trade protection are crucial. Adams warned that without effective measures, deindustrialization would accelerate. However, he noted a clear political commitment at the European level to preserve the industry.
The global excess of steelmaking capacity is both structurally and materially significant. Europe must prevent the "free use of CO2" by redistributing resources and circumvention maneuvers, protect European steel exports and avoid the displacement of processing companies. Adam concluded that the emergence of new steelmaking capacity in countries such as India and China over the next decade could undermine Europe's efforts to combat climate change.
Natalia Capra France
kallanish.com
