A history of positive response

The disarray in the post-Soviet era created a flood of steel imports from East European countries. In 1992 the situation worsened due to a softening business cycle and the devaluation of the US Dollar. All these elements led to plummeting prices.

Inspired by Nippon Steel’s Nagoya plant, a master plan was launched in 1990 which aimed at repositioning Hoogovens into the group of ‘Best in Europe’ by 1995. This plan covered a wide range of aspects such as organisation, education, complete customer focus and operational excellence. The basis for this improved competitiveness was a drastic reduction in cost-base by gradually reducing the number of personnel and by increasing output.

Alarming financial results in early 1992 forced the company to accelerate the master plan. Through the joint efforts of its personnel, trade unions, shareholders and a large group of very loyal customers in Europe and the US, the company was able to counter the threat within two years. The efforts paid off in the late 1990s, when Hoogovens in IJmuiden was declared the best plant in Europe for financial performance.