skw europe

SKW – Europe (Incl. C.I.S., the Middle East and Africa)

The European steel industry is more traditional with markedly different cultures of steelmaking but, all customers are looking for a competitive supply chain. The steel industry has long held a strategic place in the EU economy, fostering innovation, growth, and employment. To face the downturn of steel demand after the economic crisis and ensure a promising future for the sector, the European Commission is working on boosting the industry. Because steel is closely linked to numerous industrial sectors such as automotive, construction, electronics, or renewable energies, it is vital to the EU’s goal to increase industry’s share of GDP to 20 % by 2020.

The CIS countries represent since 2014 more than 100 million tons of steel a year and is a growing region. The production of Ferrous materials plays an important role in the Russian economy and in its industrial potential, accounting for 18% of the industrial production, and 4% of the country’s GDP.

The Mena countries are also a clear growing area for the steel industry. While historically, Iran and Egypt have been the major steel producers in the MENA region, the industry is witnessing a shift towards the GCC, adding significant growth potentials.

Fast facts

  • With 166 million tons in 2015, the EU is the second largest producer of steel in the world after China. Taking Europe excluding the former CIS but counting in even Turkey 2015 production was even 200 million tons making this almost 13% of the global output.
  • Steel-making is closely linked to many downstream industries such as automotive, construction, electronics, and mechanical and electrical engineering. It is vital to the EU’s goal to increase industry’s share of GDP to 20% by 2020.
  • 500 steel production sites are split between 23 EU countries.
  • Turkey, for example, is one of the fast growing and most competitive regions for steel production of the last decade producing 30 to 35 million tons per year for its domestic growing economy but also the important proximate markets in central Europe
  • Within the former CIS, Russia with a 70 million tons per year production plays the important role of the steel power house for its own consumption in infrastructure, oil and gas, mining, automotive and manufacturing industry but also for supplies into east and central Europe
  • One of the newcomer regions for steel production is the middle east although, with the steel industry in Iran, it hosts a long time developed veteran taking care of steel applications in the regional oil and gas industry but also construction and manufacturing

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