“We should not be surprised that the European steel industry is suffering,” says Voestalpine chief

In the light of capacity surpluses in Europe, voestalpine’s CEO, Dr. Wolfgang Eder, believes that European steelmakers should be closing factories to avoid being outflanked by lower-cost overseas rivals.

In the light of capacity surpluses in Europe, voestalpine’s CEO, Dr. Wolfgang Eder, believes that European steelmakers should be closing factories to avoid being outflanked by lower-cost overseas rivals.

Dr. Eder told the Financial Times (FT) that around 20% of Europe’s steelmaking capacity was surplus to requirements and that plants should be closed down.“As long as many plants in Europe produce the same stuff as

its non-European competitors can produce on a much lower cost base, we should not be surprised that the European steel industry is suffering,” he said.

Eder said that European steelmakers should focus strongly on quality rather than quantity.

The FT quoted consultants McKinsey’s assertion that overall utilisation of European steel mills was ‘still not at an economically healthy level’.