The Polish steel industry is shrinking. Steel plants are being gradually shut down. Examples include the closure of the Zawadzkie pipe rolling plant and the permanent shutdown of the blast furnace and steelworks in the Kraków steel plant. Poland is not an isolated case. Steel plants in other EU countries are also facing challenges.
“Action must be taken as quickly as possible. Announcements concerning individual plants, especially major ones with an impact on the European market, are dramatic,” warned Andrzej Karol, Chairman of the National Metallurgy Section of NSZZ “Solidarność.”
The main reasons are the EU’s climate policies, the costs of carbon emission allowances, and competition from the U.S. and China, where energy required for production is significantly cheaper. The paradox is that the energy transition within this industry is leading to an even greater increase in energy consumption – in Poland, it could grow as much as fivefold.
“This crisis in the steel industry is a very serious threat to our security,” said Dr. Bogdan Sedler.
“The steel industry, and heavy industry more broadly, is the foundation of economic development, particularly for the defense industry. In the context of globalization, we cannot rely on imports. Every conflict disrupts those supplies, and such a nation is doomed to fail,” he added.
Steel is needed in many industries. A shortage caused by a disrupted supply chain could lead to crises in numerous sectors, including construction. This is especially significant given the current geopolitical situation. Moreover, uncertain times lie ahead for the international steel market. Donald Trump has already announced tariffs on countries exporting steel at low prices. This decision will impact the global economy, meaning we cannot afford to rely on foreign supplies of such a strategic raw material.
“This fundamentally concerns the industrial security of the state,” said Dr. Robert Golej, an economist and energy expert.
The collapse of the steel industry would also have severe social consequences, noted the expert.
“Approximately 200,000 people are employed in Poland’s steel industry, directly within the sector and across all industries associated with it,” explained Dr. Golej.
Trade unionists warn that a comprehensive strategy is necessary for the entire energy-intensive industry.
“We have been cooperating with various governments in our country for years, but we have not seen such stagnation as we are witnessing now,” said Andrzej Karol.
In a year, there was only one meeting with the government, which yielded no concrete results or significant interest. Trade unionists openly admit to envying their German counterparts, as Germany managed to develop a strategy for its steel industry very quickly. Germans understand that the steel industry is strategic for their economy.
“In Poland, Polsat and TVN (media companies) have recently been recognized as strategic industries. The steel industry has been striving for such recognition for years. So far, it has failed to achieve it. This only reflects the lack of interest in this industry and the absence of ideas for shaping its future,” noted the Chairman of NSZZ “Solidarność” for the national steel industry.
Every day that the Polish government delays action deepens the crisis in the industry.
“Steelworkers are fed up,” said Karol during a protest held in Gliwice as part of a conference organized by the Civic Platform (PO).
“This balloon is inflated to the limit,” he remarked.
(Taivo Sepp, Facebook)
