The European response to the challenge of the Japanese steel industry (1950–1980)

Between 1950 and 1980, the European delay with respect to Japan and the relative loss of competitiveness in the integrated steel industry was due to an institutional, geographical and economic logic based largely on historical factors. Europe had a long steel-making history that was closely related to its sources of raw materials. The new technological paradigm turned this former advantage into a clear disadvantage, while the large investments made in the Thomas and open hearth processes and the affordable price of scrap delayed the adoption of the Basic Oxygen Furnace (BOF) until its superiority had been clearly demonstrated. The European steel industry was not at the forefront of the transformation, but merely adapting to the changes, pushed by the threat of a new uncomfortable competitor.