Sectoral restructuring and environmental management in the EU iron and steel sector†

✍ Scribed by Barton, Jonathan R.

• Publisher: John Wiley and Sons
• Year: 1999
• Tongue: English
• Weight: 179 KB
• Volume: 9
• Category: Article
• ISSN: 0961-0405
• DOI: 10.1002/(sici)1099-0976(199907/08)9:4<142::aid-eet194>3.0.co;2-s

✦ Synopsis

The EU iron and steel industry has undergone rapid transformation since the early 1980s. Privatization programmes, rationalization, increased international trade in raw materials and steel products and pressures for energy reduction and improved environmental protection have all led to significant structural changes. To remain competitive, EU firms have had to improve productivity, develop niche markets and foster client relationships. Alongside the restructuring, environmental regulations and market and stakeholder demands relating to the environment have brought new pressures to bear, increasing investment and operating costs.

This article focuses on firm responses and two points are made. The first is that EU sectoral restructuring is a response to increased global competition and that steel sales are increasingly determined by price. As prices become more competitive and costs are pared, particularly labour, there has been an important relative increase in environmental expenditure for firms. Awareness of these costs, also the market and public relations issues relating to the environment, has led to firm responses that range from minimal compliance to proactive 'first mover' strategies. Scale of operation and process type are important factors in determining these environmental strategies. The second point is that, in the longer term, there will be a need for better regulatorfirm coordination in order to move beyond the current drivers of compliance and public pressure. To promote cleaner production approaches and improved environmental performance evaluation across the sector will require greater flexibility and economic awareness from regulators, and a more innovative and integrated approach to environmental protection by firms.