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EEC prepares list of joint measures to support metallurgical industry within EAEU in light of coronavirus pandemic

EEC prepares list of joint measures to support metallurgical industry within EAEU in light of coronavirus pandemic

The state of the metallurgical industry amid the COVID-19 coronavirus pandemic, possible joint measures to be adopted to promote demand for high-tech metal products within the Eurasian Economic Union, problems of excess capacity, energy efficiency of metallurgical production as well as raw materials supply for the industry and implementing joint cooperation projects were discussed by attendees of the 2nd Eurasian Metallurgical Industry Conference held on October 15 at the Eurasian Economic Commission’s venue. The event, organized by the Commission's Industrial Unit, was held in a video format.

The conference was attended by representatives of public authorities, the scientific community, heads of major metallurgical companies and industry business associations of the EAEU countries.

Artak Kamalyan, Member of the Board – EEC Minister in charge of Industry and Agriculture, has noted that the metallurgical production (manufacture of alloys, rolled products and pipes) in the EAEU as a whole decreased by 2.9% in the first half of this year compared to the same period in 2019 and cooperative deliveries in metallurgy decreased by 17.6% as a result of tough economic situation due to the coronavirus pandemic.

These challenges require a new level of interaction within the integration association considering that metallurgy is an industry with great cooperation and export potential, the EEC Minister believes.

"Today, stable progress in metallurgy is directly related not only to technological competencies, but also to the level of cooperation within the Union, the removal of obstacles and barriers, joint adoption of measures to support the industry and the development of innovations and human capital," Artak Kamalyan stressed.

He mentioned transformers manufactured of high-permeability electrical steel - innovative metallurgical products - as an example of a successful cooperative project. Today, new participants from Belarus and Russia joined the project.

According to Tigran Harutyunyan, Deputy Director of the EEC Industrial Policy Department, who moderated the conference, positive growth was observed during this period in Armenia, Kazakhstan and Kyrgyzstan (by 5.2%, 3.6% and 9.8%, respectively) despite external and internal challenges, while in Belarus and Russia, the production volumes decreased by 4.9% and 4.1%, respectively.

The EEC representative has informed that in order to foster consumption of metallurgical products within the Union and actively promote them to foreign markets in light of the coronavirus pandemic, the Commission, involving the Eurasian Development Bank, works through mechanisms to support projects with integration potential."These events will contribute to deepening the industrial cooperation, ensuring the utilization of metallurgical capacities, boosting the demand for hi-tech metallurgical products in the Union as well as organizing the exchange of experience between manufacturers," Tigran Harutyunyan said.

The conference attendees have noted the need to adopt joint measures to counter new global challenges to the industry amid climate changes and global warming, struggle against counterfeiting and promote the demand for metallurgical products within the EAEU.

Developing digitalization technologies in the industry, commoditizing existing and jointly developed products and developing energy-efficient and energy-saving technologies is a promising area of cooperation.

Joint testing laboratories within the EAEU territory to confirm the conformity of the Eurasian products in third countries may become a new area of joint work to promote the Eurasian export to third markets. Such laboratories can expertise various types of metallurgical products as well. This direction is very relevant for Kazakhstan, Russia and Kyrgyzstan.

For reference

The Eurasian Metallurgical Industry Conference is the first supranational intersectoral venue for interaction between public authorities and business to discuss problems and prospects for developing the metallurgical industry, searching  for and testing breakthrough integration ideas for innovative solutions to develop metallurgy through industrial and scientific and technological cooperation. The conference outcomes will be listed in a resolution and sent to the EAEU countries’ governments.

A Memorandum on developing the industrial cooperation in manufacturing of a new generation Eurasian energy efficient transformer based on the components made of high-permeability electrical steel was signed to develop industrial cooperation between industry manufacturers on December 5, 2018 on the sidelines of the International Electric Power Forum in Moscow coordinated by the Commission's Industrial Unit.

The project participants included manufacturers from Armenia, Belarus and Russia (Armelektrozavod, OJSC for the Republic of Armenia, Minsk Electrotechnical Plant named after V.I. Kozlov, OJSC for the Republic of Belarus and NLMK, PJSC, ELEKTROZAVOD, OJSC, Tolyattinsky Transformer, LLC and Alttrans, OJSC for the Russian Federation). This is the first trilateral cooperation project within the EAEU.

Transformer manufacturers YUDZHEN LLC (Republic of Belarus) and ZET Energo LLC, Tolyattinsky Transformer, LLC (Russian Federation) joined the project in 2019-2020 in addition to the Memorandum participants. In the immediate future, it is planned to increase the production output and expand the list of project participants. In total, the EAEU has currently sold more than 1,000 standard and energy-efficient series of transformers at the amount of about 4  mln. US dollars.​