Impeach George W. Bush Message Board

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Politics : Impeach George W. Bush

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To: ManyMoose who wrote (15663)	10/18/2002 4:15:04 AM
From: zonder	Read Replies (1) of 93284

Re: Why don't steel companies swing to the thin slab casting technology and tear down their old mills? 1) Because that would mean their complete annihilation. Seriously. It is a different system of production, with different raw materials and different systems. It would mean closing this company and starting another one as a green field project. 2) Thin slab casters need far less employees than the traditional integrated mills. Not only does the latter need to run its high furnaces 24 hours a day (shutting off is too costly) but it just has a far more complicated production process. So scrapping a traditional mill and building in its place a thin slab caster means firing thousands of employees. Have you been following FIAT people in Sicily, lately? Nobody will take that responsibility. 3) Integrated (old technology) steel mills have been built with enormous cost - even the newer ones, built in the past 10 years. If I recall correctly, investment cost was something along the lines of USD 2 mn for every million ton of capacity. Nobody will write off that kind of investment just to decrease costs. So they turn to the state to increase subsidies and/or tariffs & quotas.

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