OREANDA-NEWS. May 22, 2014. Robrecht Himpe, executive vice president at ArcelorMittal Europe, addressed hundreds of delegates at European Steel Day – as the new president of EUROFER, the European Steel Association.

He identified three targets for his presidency, to ensure the future of the steel industry in Europe: market demand, trade, and energy and climate.

With steel demand in Europe still 25% below pre-crisis levels – despite positive signs of a moderate recovery in the EU economy – Mr Himpe reminded delegates that rising steel consumption of European steel, together with support from policymakers, is needed to create an internationally competitive environment for the industry: “We are all aware that industry is the backbone of the European economy. Being at the beginning of the supply chain, the steel industry has a special position in the manufacturing industry in Europe, accounting for more than 350,000 direct jobs and 1.5 million indirect jobs through the supply chain.”

As such a major employer in the region, Mr Himpe called on the European Commission (EC) to take the steel industry into account, as a strategic sector for the EU economy:

“In many EC announcements, including the Steel Action plan, there has been progress in recognising the need for a European industrial renaissance. It is therefore surprising that in some of its main policies, the EU has not yet started to take into account that the steel industry and European policymaking will achieve more by creating a win-win situation to serve Europe, its manufacturing industries, its people and governments. Now we still see proposals that damage industry, this should be improved urgently.”

Mr Himpe reiterated the need for a proper industrial policy for Europe, to ensure a return to growth for the industry: “The European Commission’s 2030 energy and climate plan alone will not support much-needed economic growth. Having already significantly reduced greenhouse gas emissions in Europe, the EU steel industry is ready to play its part in helping to further reduce CO2 emissions, in line with the Commission’s 2030 energy and climate plan.”

Speaking about his energy and climate priority, he addressed the need for fairness in CO2 reduction targets: “We favour a global climate deal to create a global level playing field, including with China as the new number one economy and CO2 emitter in the world. But as long as there are no comparable efforts made in the other major economies, there should be no extra EU unilateral targets.”

He also welcomed the recent introduction of a pilot emissions trading system (ETS) in China and in other regions.

Linking the industry’s responsibility to further reduce CO2 emissions with the need for economic growth – which will in turn provide the revenue needed to fund the investments required to drive down emissions from steelmaking – he said:

“Looking ahead, realistic targets should now be set for the foundation industries including the steel industry, in common with other emissions trading systems around the world. The EU steel industry can further reduce emissions beyond what it has already achieved, provided significant technological investments are made. This investment requires improving economic conditions that will come with higher steel demand and manufacturing growth, which in turn requires a global level playing field for trade. A realistic energy and climate plan, together with an industrial policy and fairer trade policies, should create a framework that encourages Europe’s economic growth in a number of different ways, not in a ‘one size fits all’ way as the energy and climate plan currently proposes.”

On trade, Mr Himpe said that it is essential to take the necessary steps to ensure that steel imports enter the EU market on a fair basis: “We fully support a fair level playing field, which allows local producers to compete under the same conditions in domestic and international markets.”

EUROFERwas founded in 1976 and has 59 direct member companies and national associations, representing 528 production facilities in 24 EU member states. voestalpine CEO Wolfgang Eder was the previous EUROFER president, serving for four years.

For full details of European Steel Day, visit www.eurofer.org