The world around us
The world around us is changing fast, and both global and local trends and developments are driving our strategic choices for the near and more distant future. TSN identifies six key trends that affect our business and licence to operate, both positively and negatively.
Stagnation of industrial activity in the EU
Steel‑using sectors in the EU are experiencing stagnating output, driven by persistently high energy costs, subdued investment levels and intensifying global competition. Higher‑value segments, including automotive, face increasing competitive pressure, particularly from China. This environment is constraining demand growth for steel in the EU and placing sustained pressure on the profitability of European steel producers
Increasingly stringent environment legislation
Legislation and regulation regarding CO₂ emissions in the EU are becoming increasingly ambitious and comprehensive compared to other regions. This is reflected in measures such as carbon pricing, emissions reduction targets and reporting requirements, which continue to evolve and tighten over time. For the steel industry, this creates both challenges in terms of cost and competitiveness, as well as a clear direction towards lower-emission production. For TSN, this means maintaining a strong focus on reducing emissions, strengthening compliance and improving overall environmental performance.
Rising expectations on health and living environment
Expectations regarding health, safety and the impact of industrial activities on the living environment are increasing, both from regulators and from society more broadly. In addition to formal requirements, there is a growing emphasis on transparency, reliability and the management of environmental and health-related impacts on surrounding communities. For TSN, this translates into a continued focus on improving the safety and wellbeing of our workforce, as well as reducing the impact of our operations on the local environment.
Growing geopolitical tensions
Geopolitical tensions are growing among the US, China, Russia and the EU, as each seeks to strengthen its influence within their respective spheres. This leads to high levels of economic policy uncertainty, impacting the investment climate and exports of goods from the EU to the rest of the world. As a result, TSN risks losing sales to the US and other non-EU markets, while there is also an opportunity to increase EU sales as customers source more locally.
In addition, the threat of war is resulting in significant increases in EU defence spend. This latest trend provides an opportunity to supply the EU defence sector, adding an important new growth segment.
Circularity and scarcity of materials
Circularity is increasingly seen as part of the solution in reducing environmental footprint and counteracting scarcity of raw materials. Steel is a permanent material that can be repeatedly reused and recycled without loss of quality, making it well suited to a circular economy. Increased recovery of steel has the potential to materially reduce industry emissions by lowering the need for primary steelmaking.
In Europe, manufacturers are also showing a growing interest in using recycled steel for their products. To capitalise on this trend, TSN aims to increase the usage of scrap from 17% now to 30% from the completion of phase 1 of the Green Steel Project onwards.
AI boom
Artificial Intelligence (AI) is developing fast in the US and China, while the EU follows. In a traditional industry such as steel, AI presents opportunities both in supplying steel for data centres and in transforming operations. For TSN, this means we need to embed digital and AI into our processes and operations, with a clear focus on cost-effective innovation.