Orgalime Blog

My Secretary General, Adrian Harris commented “We are relieved, as the merger would have reduced competition in the market for raw materials, particularly iron ore and have a considerable impact on the industry we represent” Orgalime represents the mechanical, metalworking, electronic and electrical engineering industry, Europe’s largest manufacturing sector (NACE 28 to 33). “Our companies, which are predominantly SMEs and family-owned, not only serve industry customers and consumers in internal market, but compete on global markets, where our industry’s exports account for one third of manufactured exports from the European Union” he added. The merger would have created possibly the world’s largest producer of iron ore, aluminium, nickel and copper controlling a major share of the market. In the particular case of iron ore, there would have been only one credible competitor left, Vale. Orgalime had already expressed these concerns to the European Commission (DG Competition) in the framework of the EC merger investigations (June 2008). Orgalime’s industries are already facing difficulties in sourcing sufficient steel to cover the order books with the subsequent knock-on effects of rising steel prices in the European Union.

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