Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-02-23-Speech-3-352"
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"en.20050223.21.3-352"2
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"Mr President, Commissioner, ladies and gentlemen, I do not know how to regard the decision by ThyssenKrupp to make 630 workers redundant tomorrow morning – in addition to those already laid off in the magnetic steel sector. I do not know whether to regard it as a lack of respect towards this Parliament, which is debating the matter, or merely as an open admission by the company of the contradictions that come with industrial policy.
Only a few days ago, the company sent a letter to Members of the European Parliament – I do not know how widely – in which it said it wanted to protect its position on magnetic steel and also to invest in stainless steel. The decisions it has just made contradict all that. The fact is that the decision to close down the magnetic steel division is causing serious employment problems and having adverse repercussions on the whole plant and the Terni area.
In employment terms, this decision may cause the loss of more than 1 500 jobs in the steelworks and allied industries. As if that were not enough, ThyssenKrupp no longer seems to show any interest in enjoying its infrastructure and energy-cost benefits, after repeatedly asking for them. Clearly, that means that it wants a free hand: a free hand gradually to dismantle the stainless steel production line too, which according to the company should actually be the plant’s core business.
We seem to have seen it all before. After taking over the Italian market, the company is gradually reducing production volumes at Terni, with magnetic steel production being abandoned so that investment can be made elsewhere. Downgraded to regional status, with its production volumes severely cut – I am talking about 800 000 tonnes a year, compared with its capacity of 2 million tonnes a year – and with high energy costs, the Terni steelworks would then basically end up being dismantled.
Are we perhaps maligning the company? Why, then, has it been making stainless steel in a decades-old plant for the last three years while a new plant, just three years old, has hardly been used at all? I think everyone now knows that it is hard to find a kilo of steel of any kind, because the market is showing clear signs of a severe shortage of materials, soaring prices, and worldwide production capacity fully saturated for a long time. It is quite clear that pulling out from Terni would push prices up further and would leave Italy’s electromechanical industry in serious difficulties, as it accounts for 40% of European consumption.
The company has not even been willing to consider alternative solutions, such as promoting a consortium of Italian users similar to the one that already exists in the United Kingdom; supplying hot coils from Germany, as is already done for certain production plants (such as Genselkirchen and even competing plants, such as Newport); or reactivating an electric furnace that has already been installed at Terni, which requires only modest investment for environmental reasons. As a result, we now find ourselves in this difficult situation, which for us is unacceptable because of the production costs and social costs involved.
How can we find a way out of this situation? First of all, the company should be asked to accept its responsibilities with regard to the commitments it has made and the agreements it has signed. Secondly, it should resume talks with the social partners and local bodies, as these are currently not taking place. We believe that dialogue between the parties is essential in order to find solutions to the current problems. Thirdly – and I address this to the Commissioner in particular – it is important to be consistent with the Lisbon strategy, which seeks to achieve competitiveness by protecting and expanding the production base, rather than closing down plants, which is precisely the opposite approach.
Lastly, I believe it is absolutely vital not only to provide answers on the state of restructuring processes across Europe but also to give some serious, in-depth consideration to the kind of industrial policy that Europe needs in order to deal with problems of competitiveness. The sooner we do that, the better. By discussing such important topics, Parliament can make a tremendous contribution to a positive solution for the Terni steelworks affair and can provide real prospects for the future of European industry."@en1
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