Business Environment

Understanding and Analyzing the Industry Environment Project Report Proposal: Iron & Steel Industry, Belgium

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Group 5, Section B 2012067 Ankita Jha 2012068 Ankur Chandak 2012082 Avirup Biswas 2012091 Bhavana Daga 2012107 Dhara Mehta

Dr Gajjavelli V

IMT, Nagpur

due . refining. pharmaceuticals. The iron and steel industry in Belgium suffered a significant decline throughout the 1970s and 80s. electronics.. automobiles. One of the founding members of the European Community. was located in Belgium. services account for 74. and income distribution is relatively equal. and highways to integrate its industry with that of its neighbours. in Seraing. Liège and Charleroi.A. Belgium began circulating the euro currency in January 2002. canals. Iron & Steel Industry . Nonetheless. growing unemployment. while agriculture accounts for only 1% of GDP. from the mid-19th century onwards. Despite the heavy industrial component. including steel.9% of GDP. The government succeeded in balancing its budget during the 2000-2008 period.Belgium Economy The iron and steel industry has long been a major industrial sector for the Belgian economy. along the sillon industries. and productive work force. most traditional industrial sectors are represented in the economy. multilingual. Belgium's public debt is about 98% of GDP. About three-quarters of its trade is with other EU countries. which is no longer economical to exploit. and a 3% budget deficit. textiles. and this factory has continued to be a world leader in steel production for more than a century. stemming from the worldwide banking crisis. highly developed transport network. Belgium imports raw materials and semi-finished goods that are further processed and re-exported. around Brussels and in the two biggest Walloon cities. Belgium developed an excellent transportation infrastructure of ports. private enterprise economy of Belgium has capitalised on its central geographic location. chemicals. railways. Belgium's trade advantages are derived from its central geographic location and a highly skilled. Belgium depends heavily on world trade. Except for its coal. In fact. and diversified industrial and commercial base. Economic growth and foreign direct investment dropped in 2008. owned by the company John Cockerill S. The first country to undergo an industrial revolution on the continent of Europe in the early 19th century.Introduction Belgium Economy The modern. the largest factory in the world. food processing. Belgium strongly supports deepening the powers of the presentday European Union to integrate European economies further. With exports equivalent to over two-thirds of GNP. and machinery fabrication. Belgium has few natural resources other than fertile soils. Industry is concentrated mainly in the populous Flanders in the north. In 2009 Belgium is likely to have negative growth.

high value-added products. packaging and general industry. and slabs respectively. La Louvière and Carsid sites. ArcelorMittal owns sites at Ghent. Some of them have also become major producers. Arcelor merged with the Indian steel producer Mittal in 2006. household electrical goods. stainless steels and customized steel upmarket solutions at Arcelor Steel Solutions & Services. Liège and Charleroi. Belgian production is destined primarily for outlets in France (28 p. The emerging economies. long carbon steels. whilst maintaining and modernising a certain number of facilities.c. of production is exported outside the European Union. are large consumers of steel and its many by-products. today. construction. The Arcelor Group itself was formed in February 2002 following the desire of three European steel producers. Factories located in Belgium. the formation of the Duferco and Arcelor groups has.). have become profitable once more as a result of an explosion in global demand and hence rising prices for raw materials and steel products. Luxembourg’s Arbed and France’s Usinor. coils and wires. the current situation demonstrates how central the iron and steel industry remains to our economy. and in relation to certain closely-linked global factors. Genk. enabled the historic steel producers to begin to conquer world markets. Asian countries and new EU Member States.largely to stagnating global demand and growing competition. first and foremost. Spain’s Aceralia.c. from 5 p. Industrial Context – ArcelorMittal. Duferco is the second largest steel producer in the country. Geel.c. the fate of which seemed sealed not so long ago.c. followed by Duferco.c. . the group is a top-level operator in five major markets: automotive. the share of electric arc furnaces has increased substantially. to create a world leader in the steel industry. in other words. of production in 1980 to 25 p. In fact. The emerging economic and environmental challenges have led the Bank to consider recent sector developments in terms of economic impact. Belgium The Belgian iron and steel industry is dominated by the ArcelorMittal group. before faltering again due to falling global demand. The sector never really picked up again. Only 10 p. In terms of production processes. despite a recovery in global demand.) and Belgium (14 p.). Finally. there has been a move towards flat products (including coated).c. where it is the largest private employer 27. Germany (19 p. the Belgian iron and steel sector has undergone considerable transformation over the last few decades. As in other industrialised countries. due above all to the closure of a large number of oxygen blast furnaces. In terms of products. however. which specialise in hotrolled strip. The ArcelorMittal Group is involved in activities in four main sectors: flat carbon steels. with a presence since 1997 following the acquisition and reindustrialisation of the Clabecq. More recently. Based in the Grand-Duchy of Luxembourg.

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