The association supported a joint call to action endorsed by European companies and industry representatives, which considers lower electricity prices a prerequisite for Europe’s industrial revival and economic resilience.
Referring to the call published ahead of the EU leaders summit to be held on 12 February, EUROFER emphasized that electricity prices, further increased by high taxes and carbon costs, have become one of the main obstacles to investment, electrification and decarbonization processes in the European steel industry.
The association stated that restoring electricity prices close to the approximately EUR 44/MWh levels seen before the energy crisis and prior to 2021 is critical for strengthening Europe’s steel industry and safeguarding industrial value chains.
EUROFER President and Chairman of the Board of Tata Steel Netherlands Holding BV Henrik Adam stated that steel is at the core of Europe’s industrial objectives, but the sector is under pressure due to high electricity costs. Adam stated, “If the EU wants investments in low carbon steel to take place in Europe, it must bring total electricity costs in all member states closer to EUR 50/MWh. Lowering electricity prices is the litmus test of Europe’s credibility in economic and climate policies.”
EUROFER also indicated that while structural reforms aimed at decoupling electricity prices from fossil fuel prices are being implemented, short term and targeted support mechanisms are needed to keep steel production and investments in Europe.
EUROFER Director General Axel Eggert emphasized that the sector is at a critical decision point, stating, “If an effective solution to high electricity prices is not delivered, investments will shift to other regions and capacity loss will occur. Keeping steel production in Europe is not only an industrial issue but also vital for Europe’s economic security and strategic autonomy.”
At the event held in Antwerp, EUROFER was represented alongside industry leaders including ArcelorMittal Europe CEO and EUROFER Vice President Geert Van Poelvoorde and Arvedi Group CEO Mario Arvedi Caldonazzo. More than 500 industry leaders, the President of the European Commission and the heads of state of six EU countries attended the event.
Comments
No comment yet.