Distrust about possible mergers in the sector


01 May Distrust about possible mergers in the sector

To deal with the crisis, ThyseenKrupp has contacted their biggest rivals (Salzgitter, ArcelorMittal and Tata Steel) to discuss a possible merger. Their negotiations focus on the European market and are causing mistrust among Socialist Euro MPs and representatives of MCA-UGT. “A fusion process always involves calculations and endanger plants,” said Ramon Jauregui, Socialist MEP, thus mentioning the bad situation facing Basque steelmakers.

This situation would get worse end of the year if China is recognized as a market economy, complicating the imposition of tariffs on their products. Iñaki Malda, the general secretary of the union section of UGT ArcelorMittal Aviles, admits that there is concern above mergers because if they occur would have factories that “it would be suffering” in Europe, but ruling out problems for the steel industry of Principality. “The Asturian plants are in the best position” he said and charged against the strategy of the European Union. “The response to the dumping is slow and clumsy”, further noting that “comes at a price three times below the cost of production.”

The Socialist group in the European Parliament wants a firm position against the Asian giant as a market economy, “because neither is nor is it,” says Jonah Fernandez, another Socialist MEP, who argued that Chinese industry is “absolutely intervened “.

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