Steel production hampered by high energy prices – Steel Lobby Group
16:59
A study conducted by EY Consulting indicated that lowering the cost of electricity for steel production in Poland could lead to increased production and gains in government revenue, the Polish press reported on Wednesday. The study, commissioned by the Metallurgical Chamber of Commerce and Industry, a group that lobbies for regulatory changes which would benefit the steel industry, highlighted the value of the steel industry’s contribution to Poland’s GDP, and analysed the impact of energy prices on development of the steel sector. Stefan Dzienniak, president of the group, mentioned that regulatory changes from the government that lowered energy prices for smelters would generate higher production, as well as increase the number of jobs related to the industry. “The impact of the steel sector on the economy stems not only from the value of goods produced, generated jobs and taxes paid directly by the companies in this industry. This influence is much wider, because the industry contributes to the generation of additional production in the economy through the supply chain and consumer spending workers,” Dzienniak said.
The report noted that, presently, 20,000 direct jobs are associated with the industry, with another 146,000 indirect positions. It uses a lot of coal in its smelting process and generates huge demand for both gas and electricity. The steel industry is responsible for an estimated PLN 2.6 billion in revenues annually, according to the report.
