Capacity Cuts Needed Says Eurofer President Eder

“’Europe’s steel mills face obsolescence and steelmakers may quit the region if politicians continue to prevent restructuring and capacity cuts in the sector’ said Wolfgang Eder, the chief executive of Austrian specialty steelmaker Voestalpine and president of the European Steel Association, or Eurofer.” (Wall Street Journal)

Eder’s comment comes on the heels of the announcement by ThyssenKrupp that it will cut 2000 jobs at its Steel Europe operations, with an additional 1800 more possible, in an effort to reduce overcapacity and save $670 million. ArcelorMittal has struggled with closings at its Florange and Liege plants in France and Belgium and finished 2012 with a net loss of $3.73 billion. Friday, Swedish specialty mill reported an operating loss of $104 million for the fourth quarter—its second negative posting in a row due to decreased demand.