EU aims to revive flagging steel industry THE European Commission has launched an 'action plan' to revive a struggling EU steel industry hit by falling demand, rising costs and fierce competition from China and other emerging economies. The challenges are daunting -- the steel market has slumped, jobs are being lost and there is such massive overcapacity it would take up to seven years to bring supply and demand back into balance, the EC said. But the industry still has a future as a major engine for growth and employment if it can build on its strengths, EU Industry Commissioner Antonio Tajani said. "The steel industry has a promising future in Europe," Tajani said. By continuing to lead in innovative products, its traditional strength, it can achieve a globally competitive edge. To help bring this about, the EC aims to put in place a supportive regulatory framework and to help boost demand from key buyers of steel -- the auto and construction sectors. Brussels will seek to improve access to foreign markets and bring about a "level playing field so as to support EU steel exports, fight unfair practices and ensure access to vital raw materials," a statement said. Additionally, it will promote efforts to control and reduce energy costs, including helping companies secure long-term electricity contracts if need be, while also supporting innovation and research. The EC said the EU steel industry currently employs some 360,000 people and has annual sales of 170 billion euros ($A239.44 billion). Producing 177 million tonnes or 11 per cent of global output, it is ranked second in the world.