EC MINISTERS ANNOUNCE PLAN FOR STEEL CLOSURES
European Community (EC) industry
ministers agreed on a plan for voluntary steel plant closures,
drawn up by industry lobby group Eurofer, and calculated to
lead to the loss of about 22,000 jobs.
    The ministers resolved that the proposed closures, which
should bring production capacity more in line with weak demand,
"remain considerably below the surplus in capacity."
    They asked the EC Executive Commission to consult with
Eurofer, major steel companies and with governments, to
pinpoint scope for further capacity reductions beyond the
annual 15.26 mln tonnes identified by Eurofer.
    The Commission will draw up a new system  of steel
production quotas to protect vulnerable EC firms from the full
rigors of open competition.
    Commission sources said any new system would cover only
heavy products representing about 45 pct of the market, instead
of 65 pct under the present system.
    Ministers hope to approve a closure program when they meet
again in Brussels on June 1, the sources said.
    Industry Commissioner Karl-Heinz Narjes told ministers
capacity was 30 mln tonnes in excess of requirements and that
this excess ought to be eliminated by the end of 1990.
 Reuter
