Ljubljana, 25 March 2025 – The European Commission last week adopted a set of measures to preserve and expand Europe's industrial capacity in the steel and metals sectors. The Steel and Metals Action Plan aims to boost the competitiveness of the sector and future-proof the industry.
"At SIJ Group, we support the Steel and Metals Action Plan, which underscores the strategic importance of the European steel industry to the EU’s sovereignty, security and competitiveness. Steel plays a vital role in numerous value chains across the European Union. There are a few details of individual measures that will need some fine-tuning, but the plan effectively identifies and addresses the key challenges facing the European steel industry, with the next step being to swiftly implement the announced measures at both EU and Member States levels to reverse the current decline in the European steel sector as soon as possible," said Aleš Falatov, Marketing and Business Development Director, at the plan’s launch.
In order to create a level playing field with global competitors and to encourage investment and the use of sustainably produced steel in the market, the SIJ Group welcomes the various measures announced.
Strengthening the EU's trade defence mechanisms to effectively counter foreign subsidies and unfair competition is essential. China (the world's largest steel producer) and other countries subsidise steel production, leading to global market surpluses and unfair competition.
Regarding trade policy, we urge immediate and decisive action to protect the EU market, which is practically the only open market for steel and, as such, vulnerable to unfair competition practices from third countries. In April, enhanced safeguard measures on steel will take effect, while a new, long-term safeguarded trade policy on steel is not expected to be implemented until July 2026.
European metal producers face high emissions costs, while competitors in countries with lower environmental standards do not. Therefore, strengthening the Carbon Border Adjustment Mechanism (CBAM) to curb carbon emissions will be a positive step, benefiting both steel and, now, certain steel end products as well.
The need to reduce energy costs for industry has been stressed on several occasions. Many Member States (including Germany, France, Italy, Spain, Poland, Greece, Belgium, Austria, and Sweden) are already implementing measures to mitigate high electricity prices for the economy, and we look forward to seeing those measures in Slovenia as soon as possible.
The introduction of resilience and sustainability criteria for European products in public procurement is expected to boost demand for low-carbon steels, such as those produced by SIJ Group, opening up significant new market opportunities. They are seeking more concrete measures to stimulate European steel consumption within the EU, which would revive a market that has been relatively stagnant in recent years.
SIJ Group particularly welcomes the recognition of steel scrap as a strategic secondary raw material and its highlighted role in the EU's circular economy and decarbonisation efforts. With more than 70% of its steels made from recycled raw materials, steel scrap is a strategic raw material for producing low-carbon steels. Being vertically integrated, SIJ Group has its own company that collects and sells waste.
SIJ Group is sceptical about the European Commission's hesitancy to introduce the "melted and poured" concept, which would classify steel cast within the EU – rather than imported from third countries and merely finished here – as exclusively of EU origin.
They are also sceptical of the approach that the green transition will involve various subsidies for their competitors, subsidies that will not be available to producers already producing steel efficiently within the circular economy using the best available technologies. Currently, only 40% of steel produced in Europe is made using circular economy practices. They understand that the goal is to promote environmentally responsible steel production, but this approach could disadvantage producers who have already transitioned to sustainable production through their own past investments and remain committed to further reducing their environmental impact. SIJ Group estimates that it will spend EUR 70 million on this by 2030, halving its carbon footprint compared to the 2020 baseline.
They also want a more pragmatic approach to sustainability that does not hamper competitiveness in export markets. They aim to continue exporting to global markets, but this is significantly hindered by, in addition to the aforementioned energy costs, excessive bureaucratic red tape surrounding sustainability, which their foreign competitors do not face. SIJ Group has recently identified an opportunity primarily in the US market – which is poised for long-term growth and remains structurally robust despite tariffs – and in the Middle East.
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About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It generates around EUR 152 billion gross in added value, directly employs around 303,000 people and produces an average of 152 million tonnes of steel per year. More than 500 steel production plants in 22 EU Member States provide jobs directly and indirectly for 2.6 million European citizens. The steel industry, closely tied to the European manufacturing and construction industries, is a cornerstone of development and employment across Europe.
ABOUT SIJ GROUP
The SIJ Group is one of the leading producers of stainless steel and special steels in Europe. They are committed to global and European climate goals and operate in line with circular economy principles. With their steel and steel products, they are the ideal partner for driving the green transition in Europe. In 2024, they reinforced their sustainability credentials by achieving certification to the rigorous ResponsibleSteel standard. This has positioned them as one of the world’s most responsible and sustainable steel producers. Within the SIJ Group, the two largest companies are modern recycling steelworks, where the steel produced is made from recycled steel scrap. With over 3,500 employees, they are one of the largest employers in Slovenia and a pillar of the Slovenian steel sector. They are one of Slovenia's leading exporters. About 85% of their revenue is generated in foreign markets.
More information:
SIJ – Slovenska industrija jekla, d.d.
Sara Wagner, Head of Corporate Communications
Corporate Communications
Telephone: +386 1 242 98 27
Mobile phone: +386 41 313 532
E-mail: sara.wagner@sij.si
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