Prague – Europe must safeguard its steel production to avoid jeopardizing its military enhancement efforts. In an interview with Bloomberg, Petr Popelář, chairman of the board at Moravia Steel, the largest steel producer in the Czech Republic, emphasized the challenges faced by steelworks and metal processing firms in the European Union. These challenges include excessive regulation, high energy costs, and unfair foreign competition. He advocated for the implementation of tariffs and quotas, as well as increased public funding to assist the sector in achieving environmental objectives.
“It is vital for Europe to retain as much steel production capability as possible to ensure that strategic sectors, such as defense and infrastructure, do not rely on imports from non-geopolitical allies,” Popelář stated.
Moravia Steel employs 15,000 people across Central Europe and remains the only primary steel producer in the Czech Republic. Despite a slight profit last year attributed to significant cost reductions, the company’s financial outlook is bleak. This year, it postponed most of its planned one billion euros (24.8 billion CZK) investment to transition its Třinecké železárny division from coal to electricity, as mandated by the EU Green Deal regulations. Popelář warned that without further state subsidies and regulatory relief from the EU, Moravia Steel may have to gradually halt primary production and rely on imports.
He highlighted that a decline in production within Europe could hinder the continent’s pursuit of self-sufficiency amid rising defense expenditures. “Europe might be the only market globally that fails to adequately support its steelmakers,” Popelář remarked. “Steel can be sourced anywhere, until a military conflict arises.” He stressed the critical nature of steel for national security, adding, “Depending on imports from non-European nations would be tantamount to shooting ourselves in both feet.” (June 26)
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