High electricity prices could hurt the Slovak steel industry - experts

Steel production has been and will remain one of the pillars of the Slovak industry, without which it is impossible to ensure a stable economy and employment, according to the country's Ministry of Economy. The steel industry employs over 23 thousand people, accounting for 10 percent of the total industrial production in Slovakia.

Pavol Pavlis, State Secretary of the Ministry of Economy of Slovakia, said that “Production in the metallurgical industry is growing, but outside the EU in Russia, Ukraine and Turkey. Thus, the EU must take steps to ensure that companies become competitive outside the EU area. This is of great importance for the steel industry in Slovakia. However, high electricity prices may hinder the Slovak steel industry. ”

The steel industry is also very important for Slovakia, where the sector is dominated by the US plant in Kosice. With an annual production of 4.4 million tonnes of steel, Slovakia accounts for 2.4 percent of the EU's production capacity. The sector also has a significant impact on regional employment and helps improve Slovak foreign trade performance.

The head of the European Commission for Entrepreneurship and Industry believes that “the new action plan developed for the steel industry in Europe takes into account the interests of Slovakia. The steel industry is of strategic importance for the European economy, as it represents 360 thousand jobs in more than 500 EU countries. The European Union produces 177 million tonnes per year and is the world's second largest steel producer after China. "

The EU Steel Industry Action Plan is based on the six principles of a good regulatory framework, equal steel demand for EU steel producers, energy and climate policies, competitiveness enhancement, support for sector innovation, and sector qualifications.