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Consolidation in the EU Stainless Steel Sector is a Step Nearer
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2011-07-04

According to MEPS, Europe's four major stainless steel producers have all been involved in significant restructuring since the beginning of 2011. It seems unlikely that this is mere coincidence. It is perhaps understandable that large companies should reorganise internally to try to improve profitability in such testing times as these. However, there is inevitable speculation that at least some of this activity has been in preparation for consolidation in the European stainless steel market.                               

 It has always been suspected that antitrust regulators would be a barrier to amalgamations between the big four European producers. However, penetration in recent years by imports, especially from China, has altered the shape of the market. So, what are the potential combinations? ThyssenKrupp and Outokumpu would have good geographical synergy in Europe, for example. Similarly, an alliance between Aperam and Acerinox would fit well in the Americas. The other possibility to consider is a combination with a non-European, probably Asian, producer. This would allow both parties access to new "home" markets, whilst lessening the likely obstacle of EU competition law. (source: MEPS)

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