Steel crisis

The steel crisis was a recession in the global steel market during the 1970s recession, following the end of the post-World War II economic boom and the 1973 oil crisis.

Steel production had increased exponentially since the industrial revolution, and demand had been especially high during the world wars. Steel prices significantly dropped as the market became saturated with steel, and many steel mills in the Western world were driven out of business.

Some areas affected by the steel crisis were the Rust belt in North America, the English Midlands in the United Kingdom, the Ruhr area in West Germany and Bergslagen in Sweden. The U.S. city of Youngstown, Ohio was among the hardest-hit areas of the steel crisis, with the announced closure of Youngstown Sheet and Tube on September 19, 1977, still known to locals as Black Monday; as of July 2013, Youngstown still hasn't recovered from the steel crisis.[1]

Britain

In Britain, a series of political and economic crises impact the steel industry. The steel industry was nationalized in 1967 by the Labour government. Historian Alasdair Blair states that British Steel (BSC) had "serious problems" including complacency with existing obsolescent plants (plants operating under capacity and thus at low efficiency); outdated technology; price controls that reduced marketing flexibility; soaring coal and oil costs; lack of capital investment funds; and increasing competition on the world market. Blair argues that by the 1970s the government kept employment artificially high in a declining industry. This especially impacted BSC since it was a major employer in a number of depressed regions.[2]

British Steel was privatised in 1988 by the Conservative government of Margaret Thatcher. Under private control the company sharply cut its work force. Alasdair Blair describes this as a "radical reorganization", and states that this, along with a huge capital investment, made them competitive in the world marketplace.[3] On 6 October 1999, British Steel merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group,[4] which became the world's third-largest producer of steel (behind POSCO of South Korea and Nippon Steel of Japan). British Steel formed about two-thirds of the merged group. Corus itself was taken over in March 2007 by the Indian steel operator Tata Steel,[5] and Corus changed its name to Tata Steel Europe and adopted the Tata corporate identity in September 2010.

References

  1. ↑ Steven High | Capital and Community Reconsidered: The Politics and Meaning of Deindustrialization | Labour/Le Travail, 55. The History Cooperative. Retrieved on 2010-12-23.
  2. ↑ Alasdair M. Blair, "The British iron and steel industry since 1945." Journal of European Economic History 26.3 (1997): 571.
  3. ↑ Blair, Alasdair M. "The British iron and steel industry since 1945," Journal of European Economic History Winter 1997, Vol. 26 Issue 3, pp 571–81
  4. ↑ British Steel merges with Dutch rival BBC, 7 June 1999
  5. ↑ "India's Tata wins race for Corus". BBC. 31 January 2007. Retrieved 26 November 2007.

Bibliography

This article is issued from Wikipedia - version of the Thursday, May 05, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.