26 June 2013
The European Commission has put forward an action plan to revitalise the European steel industry and ensure downstream industries remain confident in the procurement of the important material.
According to the Organisation for Economic Co-operation and Development (OECD), global steel demand is expected to increase to 2.3 billion tonnes by 2025, mainly from the construction, transport and mechanical engineering sectors.
With a current annual output of over 177 million tonnes of steel and a turnover of around $220bn, the EU is the second largest producer of steel in the world and accounts for 11% of the global output, according to a report from the European Commission.
Overcapacity and low demand has hit the European steel industry (Credit: Pollo/Wikimedia)
However low demand, worldwide overcapacity and high energy prices has hit the industry and the EC has committed itself to boosting demand for steel in the sustainable construction sector.
European Commission Vice President Antonio Tajani, Commissioner for Industry and Entrepreneurship, said steel had a promising future in Europe, adding: "We aim for industry to deliver 20% of GDP by 2020."
Source: European Commissionï»¿