IP/04/330
Brussels, 12 March 2004
EU Steel Technology Platform: a new dynamic for the European steel sector
Today in Brussels European Research Commissioner Philippe Busquin and Guy Dollé, Chief Executive Officer (CEO) of Arcelor and President of EUROFER, jointly launched the European Steel Technology Platform. This high-level group gathers the main representatives of the European Steel industry. They have presented a Report aimed at developing a strategic research agenda to provide a long-term vision and roadmap for the EU steel industry up to 2030. The Platform brings together key European stakeholders including enterprises, research institutes and organisations of steel users. The platform’s aim is to help the sector meet the challenges of the global marketplace, changing supply and demand patterns, environmental objectives, and the streamlining of EU and national legislation and regulation in this field. In addition, with EU enlargement, the need for extensive restructuring of the steel industries is even more pressing. The Platform will help identify ways to boost research and innovation and to develop new and cleaner processing methods such as reducing CO2 emissions. It will foster links between industry and academia to develop qualifications and skills necessary in this fast-moving sector. It will also advise on how best to fine-tune and co-ordinate available instruments and resources - including EU programmes – to make the most of access to capital, scientific excellence and technological know how.
“Steel represents a key sector for Europe,” said European Research Commissioner Philippe Busquin.“During the last few decades the European steel industry has undergone extensive restructuring, but more efforts are needed. Innovation saved European steel and turned the sector into a competitive global player. But more research and investment are necessary to remain competitive and face the challenges of globalisation and sustainable development. Thanks to a long track record of excellence in scientific co-operation, innovation and networking and the support of EU steel research, the sector is ready to face these challenges. Steel industry players participating in the Steel Technology Platform will join forces to define a vision to meet future challenges and create a true European research area in the steel sector.”
The high level group includes the main representatives of: Arcelor S.A., Acerinox S.A., Badische Stahlwerke GmBh, Böhler-Uddeholm, Celsa Group, Corus, Federacciai, ILVA S.p.A., Riva Acciaio S.p.A., ISPAT Europe Group S.A., Megasa, Outokumpu Oyj, Rautaruukki Oyj, Salzgitter AG Stahl und Technologie, Steel Institute VDEh, SSAB Swedish Steel, Thyssenkrupp Steel and Voestalpine AG.
Steel key for European competitiveness
Steel is a key sector for Europe’s economy and competitiveness. The European steel industry is a world leader in the production of steel and at the forefront of modern production methods. The European steel industry has a real competitive advantage compared to its major trading partners thanks to its continuous research collaboration efforts, which have been partly undertaken in the framework of the European Coal and Steel Community (ECSC).
The European steel industry has a total annual production of about 160 million tonnes and generates a €90-€100 billion turnover each year. It provides direct employment for more than 250000 European Union (EU) citizens, with several times this number employed in the steel processing, usage and recycling industries. Accordingly, the steel industry is also the origin of millions of other jobs in numerous industrial sectors. For instance, the European steelwork construction industry and automotive sector represent 1.1 million and 200 000 jobs respectively.
From crisis to leadership
Thirty years ago the European steel industry employed 774,000 workers. During the seventies and eighties, the sector was affected by severe crises and underwent radical restructuring. But during the nineties, new technologies and modern production processes were introduced, and the sector took off again. Privatisation and cross-border mergers also improved the industry’s competitive performance. From 1998 on, the European market has fully absorbed EU steel production, with the industry exporting its high-quality products world-wide.
The industry now aims to maintain its position as a world leader through the implementation of a sustainable development policy that will meet society’s needs and ensure its continued competitiveness. Over 40 years, the EU steel industry has reduced its CO2 emissions by 60% and energy consumption by 50%, but this CO2 level still represents 6% of total EU CO2 emissions.
Challenges ahead
The EU steel industry faces important challenges in the global market, such as competition with emerging countries, the necessity to respond to more demanding markets and the need to make a clear commitment to saving natural resources in line with environmental regulations, particularly in significantly reducing CO2 emissions. These challenges require determined long-term action by all industry stakeholders. In particular, environmental issues and the development of new steel solutions for many applications will necessitate the implementation of new production routes.
Enlargement around the corner
The steel industry plays a relatively bigger role in the ten new EU Member States, compared to the existing EU-15. In 2002, steel production in the accession countries amounted to 26.1 million tonnes, which is 16.5% of EU-15 production (158.6 million tonnes). New EU Member States are modernising their steel industries and participating in EU research projects in this field so as to catch up with their EU-15 partners.
A key role for EU research
Research is a key factor in ensuring that the steel industry maintains its global leadership in an increasingly competitive world while meeting society’s needs. An increased effort in the area of research and development is therefore crucial. The issues of work safety and availability of skilled and well trained workers must also be addressed in parallel with these activities. The €1.6 billion legacy of the European Coal and Steel Community, which produces the revenues of the “Research Fund for Coal and Steel” (RFCS), provides financial support for research activities within the steel and coal sectors. Around 73% of RFCS funding goes to steel research. For the 2003-2004 period more than €43 million per year will be earmarked for steel research, with 49 projects for 2003.
In 2004, the Commission is committed to supporting co-coordinated projects (€20 million for the FP6 and €5 million for the RFCS) in order to reduce CO2 and greenhouse gas emissions in steel production. On top of that, funding opportunities for research in the steel sector are available through the EU €20 billion 6th Framework Programme for Research (FP6, 2003-2006), which has several thematic priorities relevant for steel research including new materials, new production processes and energy. This is an example of converging funding schemes to make steel production leaner, meaner and above all cleaner, with the overall priority of reducing CO2 emissions.
The steel technology platform: ambitious objectives for Europe
The March 2002 European Council in Barcelona called for the EU to boost its research spending so as to reach 3% of EU average GDP by 2010. The setting-up of pan-European public/private partnerships for technological research (technological platforms) will help increase research investment, and ensure that funding is used in a more efficient and consistent way.
This is why the European Commission and all steel industry stakeholders are jointly launching the European Steel Technology Platform. This new platform builds on successful research agendas launched over the past two years in a number of other key sectors, such as aeronautics (by the “Advisory Council on Aeronautics Research in Europe” or ACARE) and rail transport (by the “European Rail Research Advisory Council” or ERRAC).
All partners involved in the Steel Technology Platform have worked together to prepare a Report identifying the strengths, weaknesses and challenges of this sector. The initiative paves the way for a strategic research agenda and has been co-signed by all steel industry representatives. It sets out the key challenges for the future and should lead to a long-term vision for the EU steel industry up to 2030, as well as providing a clear strategic research agenda. The key objective is to co-ordinate all instruments and available resources - including EU programmes – in order to achieve critical mass in terms of financial strength, scientific know how and technological excellence. The platform is an open structure; other stakeholders are expected to join it according to the evolution of priorities.
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