EU Action Will Alleviate Pressure on Steelmakers, Says VOESTALPINE
11 February 2016
According to the Austrian firm, Voestalpine, Europe’s steel industry will experience an ease in pressure succeeding the imposition of duties on cheap imports of cold-rolled flat steel from countries like Russia and China.
Europe recently witnessed a plummeting downturn as the steel companies are clutching at straws due to the steep drop in prices and the burgeoning overcapacity of China and Russia who allegedly export colossal quantities at suspiciously low prices—a practice termed as dumping.
"Structural problems in Europe have to be overcome soon to protect the steel industry. That’s why European anti-dumping measures are expected to take effect in the course of the first half of 2016, particularly towards the summer,” said Wolfgang Eder, CEO of Voestalpine.
In the light of the obtrusive difficulties of the market, plans of expanding cost-cutting programs for 2016/17 by 100 million-1 billion Euros ($1.13 billion) have been formulated by Voestalpine. Other savings would be attained from the metal forming and steel businesses.
A third of Voestalpine’s revenue is derived from Steel which is the biggest division of the company. The Linz-based company is aiming to become less dependent on traditional steel markets by raising its production of finished parts for the aerospace, rail and automotive industries. 30% of the group’s earnings are generated by the Autos sector alone.
Eder further stated, “The emissions-cheating scandal at Europe's leading carmaker Volkswagen has had no effect so far on orders. Everything is running smoothly as in the years before the scandal.”
Shares in the firm have plummeted by 30 percent over the past 12 months but have fared better than those of rivals Arcelor Mittal and United States Steel, who lost nearly 70 percent. ($1 = 0.8857 Euros).
Source : reuters.com