Steel producers join EU lobbying group
Membership in the European Union (EU) steel-industry lobbying group also should hasten the integration of Poland's steel makers into the EU market, say industry officials here.
"I think it's quite important," said Dariusz Zbytniewski, a supervisor at Ernst & Young. "It will also now be more transparent for third parties to see Polish companies' operations."
Eurofer is a non-governmental lobbying group that sets foreign trade, environmental and quality policies for the EU steel sector. It also acts as a forum for sharing information among producers about market trends and pricing.
"They're important competitors in our market, and we want to integrate (Poland's) steel producers into the culture of the free market," said Elio Mauro, director of international affairs for Eurofer in Geneva.
Poland's steel sector, the largest in Central Europe, accounts for 6% of GDP. It had a 1994 output of 11 million tons, with exports to the EU making up 15% of sales. The Czech Republic is the second-largest in the region, producing seven tons last year.
The memberships could also mean that Polish steel makers might avoid further charges leveled by members of Eurofer that Poland dumped low-price exports in the EU market. The extent of dumping is difficult to estimate, according to Eurofer, because it occurred over several years. Complaints were filed by European producers in 1994, but a decision by EU courts is pending. Mauro said the underpricing was probably a misunderstanding of the Western steel market on the part of the Poles.
"We hope that with more contact, Poles will know better the level of our prices and eventually they will adapt to EU prices," Mauro said.
Although joining Eurofer means that Poland's steel makers will be more astute market participants, Polish steel production still lags behind in terms of technology and efficiency. The Trade and Industry Ministry says the majority of steel production equipment is more than 20 years old, built during a boom in demand among the guaranteed markets of the Soviet Bloc. A plan for the restructuring of the whole industry was adopted by the Trade and Industry Ministry in 1992. Plans to re-tool the mills and update the environmental standards were set to begin in 1994 and are expected to last for 8-10 years. Required capital expenditure has been estimated at $4.4 billion. The Polish government has decided to privatize the sector, but none of the 23 steel mills are slated for privatization this year.
"Eurofer cannot influence their decisions but hope that this process will be very fast," Mauro said.
"I think it's quite important," said Dariusz Zbytniewski, a supervisor at Ernst & Young. "It will also now be more transparent for third parties to see Polish companies' operations."
Eurofer is a non-governmental lobbying group that sets foreign trade, environmental and quality policies for the EU steel sector. It also acts as a forum for sharing information among producers about market trends and pricing.
"They're important competitors in our market, and we want to integrate (Poland's) steel producers into the culture of the free market," said Elio Mauro, director of international affairs for Eurofer in Geneva.
Poland's steel sector, the largest in Central Europe, accounts for 6% of GDP. It had a 1994 output of 11 million tons, with exports to the EU making up 15% of sales. The Czech Republic is the second-largest in the region, producing seven tons last year.
The memberships could also mean that Polish steel makers might avoid further charges leveled by members of Eurofer that Poland dumped low-price exports in the EU market. The extent of dumping is difficult to estimate, according to Eurofer, because it occurred over several years. Complaints were filed by European producers in 1994, but a decision by EU courts is pending. Mauro said the underpricing was probably a misunderstanding of the Western steel market on the part of the Poles.
"We hope that with more contact, Poles will know better the level of our prices and eventually they will adapt to EU prices," Mauro said.
Although joining Eurofer means that Poland's steel makers will be more astute market participants, Polish steel production still lags behind in terms of technology and efficiency. The Trade and Industry Ministry says the majority of steel production equipment is more than 20 years old, built during a boom in demand among the guaranteed markets of the Soviet Bloc. A plan for the restructuring of the whole industry was adopted by the Trade and Industry Ministry in 1992. Plans to re-tool the mills and update the environmental standards were set to begin in 1994 and are expected to last for 8-10 years. Required capital expenditure has been estimated at $4.4 billion. The Polish government has decided to privatize the sector, but none of the 23 steel mills are slated for privatization this year.
"Eurofer cannot influence their decisions but hope that this process will be very fast," Mauro said.
