Consequences of Globalisation for the Belgian Steel Industry

Abstract

Since a few years the worldwide steel industry has been under the spell of a great consolidation wave and enhanced competition. 2006 was a peak year with the merger of the European group Arcellor Mittal Steel to ArcellorMittal. With this merger, ArcellorMittal became the greatest steel group in the world with a market share of more than 10%. Thanks to the consolidation trend, the steel industry has changed from an obsolete and loss-making industry to a modern, attractive and profitable business. The merger of ArcellorMittal offers the Belgian steel companies of the group the opportunity to perform better and save costs. The Belgian companies themselves have a lot of strengths to stay competitive and to secure their position in the worldwide steel industry. After all, they have favorable geographical situation and present very good results concerning product quality and delivery terms, research and development, labour productivity and creativity and health and safety. Since 2008 the international steel industry is very bad influenced by the economic problems and recession.