Spanish Galvanized Steel Sector Calls for EU’s Reindustrialisation to Safeguard Future Growth
The Spanish galvanized steel industry is pushing for an urgent EU action plan that focuses on reindustrialisation, aiming to ensure energy transition goals and enhance Europe’s manufacturing independence. Amid the geopolitical challenges facing Europe, the Spanish Technical Galvanisation Association (ATEG) believes galvanized steel is pivotal for Europe's growth and resilience in an uncertain international environment.
During the 60th annual conference of ATEG, its president, Manuel López Caamaño, stressed the strategic importance of the galvanized steel sector, emphasizing that it plays a central role not only in energy transition but also in the growth of vital industries such as construction, transport, and automotive. He underscored that the EU must support the sector to ensure a competitive edge in the global market and continue its progress towards sustainability.
“Galvanized steel offers a sustainable solution with a lower carbon footprint compared to many other industries,” said López Caamaño. He argued that reindustrialisation in Europe is critical for long-term economic security and for ensuring that the EU remains competitive and self-reliant in the face of rising global uncertainties.
Spanish Galvanized Steel Sector at a Glance
In 2024, Spanish galvanized steel production reached 548,000 metric tons, marking a 1% increase compared to 2023. Despite this modest growth, the demand for galvanized steel saw a decline in some key areas. For instance, the energy sector—which typically accounts for 39% of galvanized steel demand—witnessed a 4% decrease in demand, primarily due to geopolitical instability and a slowdown in renewable energy projects in Spain.
The construction sector remained the second largest consumer of galvanized steel, representing 25% of the demand. This sector includes diverse applications such as building works, infrastructure, pipelines, and bridges, all of which rely on the durability and long-term sustainability of galvanized steel.
Spain’s Role in Europe’s Steel Market
Spain stands as the fourth-largest steel producer in the eurozone. The country’s galvanized steel industry operates 39 plants, generating an estimated €200 million ($217.4 million) in annual turnover. The sector provides over 3,000 direct jobs, contributing significantly to the Spanish economy.
However, despite this strong performance, there is substantial room for growth. López Caamaño highlighted that, while 18% of steel production is galvanized in the United States, in Spain, the figure is a mere 5%, underscoring the untapped potential of the galvanized steel market.
The EU’s reindustrialisation efforts are seen as an essential step to further develop this promising sector. If the EU supports the galvanized steel industry through proper policies, investment, and incentives, it could not only strengthen local economies but also foster global competitiveness for European manufacturers.
The Strategic Importance of Galvanized Steel
Galvanized steel is vital for industries that rely on long-lasting and corrosion-resistant materials. Its role in the energy transition is significant, especially as the demand for renewable energy infrastructure grows. Furthermore, its applications in automotive, transport, and construction sectors ensure that galvanized steel remains essential to the overall economic development and sustainability goals of Europe.
In the face of increasing external pressures from global competitors, European industries must prioritize the reindustrialisation of essential sectors like galvanized steel. This would not only enhance the EU's manufacturing independence but also support its broader ambitions for environmentally sustainable economic growth.
Key Takeaways
• The Spanish galvanized steel sector is urging the EU to implement measures for reindustrialisation, ensuring energy transition and manufacturing independence.
• Galvanized steel is vital for sectors such as construction, transport, automotive, and the energy sector, offering sustainable and low-carbon solutions.
• Spanish galvanized steel production reached 548,000 metric tons in 2024, a 1% increase from 2023.
• The energy sector saw a 4% decrease in demand for galvanized steel due to geopolitical instability and lower revenues from renewable energy projects.
• The construction sector accounted for 25% of galvanized steel demand, including infrastructure, buildings, and bridges.
• Spain is the fourth-largest steel producer in the eurozone, with 39 plants and over 3,000 direct jobs in the galvanized steel sector.
• Reindustrialisation can unlock the full potential of the galvanized steel industry in Spain, where only 5% of steel is galvanized, compared to 18% in the United States.
• The EU must prioritize galvanized steel to support economic growth, manufacturing independence, and sustainability.
