Environmental Regulation in the New Global Economy
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Environmental Regulation in the New Global Economy

The Impact on Industry and Competitiveness

Rhys Jenkins, Jonathan Barton, Anthony Bartzokas, Jan Hesselberg and Hege Merete Knutsen

This book attempts to answer these questions using case studies of three pollution-intensive industries: iron and steel, leather tanning, and fertilizers. Based on in-depth interviews with managers and regulators in Western and Eastern Europe, Asia, Africa and Latin America, the book illustrates the variety of responses to the conflicting pressures of globalization and environmental protection at corporate and industry levels.
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Chapter 6: Steel and Environment: Industrializing and Transition Economies

Rhys Jenkins, Jonathan Barton, Anthony Bartzokas, Jan Hesselberg and Hege Merete Knutsen


15435_EnvironReg/Chap 6 30/5/02 2:50 pm Page 1 6. Steel and environment: industrializing and transition economies BRAZIL Sectoral Development and Competitiveness Despite the need to import most state-of-the-art production technologies, the level of process equipment in the leading Brazilian firms is on a par with other international producers. Once one considers the rapid improvements in areas such as tinning and galvanizing (for example, CSN) and in areas of special steels production (for example, Piratini) since the early 1990s, the level of diversity in Brazilian production can also be highlighted. The organization of the Brazilian steel sector is shown in Table 6.1, although actual production at 25.2 Mt in 1996 and 24.9 Mt in 1999 (IBS, various) reveals the excess capacity that exists. Table 6.1 The steel sector: installed capacity (total 1996 - 28.0 Mt) Integrated - 4.5 Mt Semi-integrated (EAF) (charcoal) 3 Mt Cosigua Pains Acesita Belgo-Mineira Mannesmann Piratini Gerdau Villares Mendes Jr. Cofavi Dedini Integrated - 18.4 Mt (coal) CSN Usiminas Cosipa CST Açominas Others - all routes Source: 4.6 4.2 3.9 3.7 2.0 2.2 IBS (in CSN, 1997b). In recent years, the most important impacts on the sector have come from the 1990 Plano Real economic stability programme and the privatization process that was central to it. The privatization of the steel sector was an early 111 15435_EnvironReg/Chap 6 30/5/02 2:50 pm Page 2 112 The iron and steel sector target of the Plan. The dismantling of the national steel production organization, Siderbras, resulted...

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