The Rise of Minimill Steel Producers in Italy and Spain, 1950–1990

In the 1960s, the optimal size of integrated steel plants significantly increased, while small steel mills known as minimills were gaining ground in the sector. Based on the use of scrap and electricity, these small plants became an alternative technological model to blast furnace steelmaking. Among the major European steel nations, Italy and Spain stood out for the early adoption and significant participation of electric furnaces in total steel production. The article explains the factors that led to the proliferation of small independent steel mills and their subsequent transformation into minimills in these Mediterranean countries. The conclusion is that, despite the different institutional frameworks, the Italian and Spanish response to the steel shortage of the 1950s was similar. This led to the emergence of many small producers, which based their development on low installation costs. In Italy, these businesses leveraged the opportunities of the postwar economic miracle, had access to a favorable supply of raw materials due to the policy of the High Authority of the European Coal and Steel Community (ECSC), and were able to resiliently face the restructuring process of the 1980s led by the Commission of the European Communities (EC). In Spain, they took advantage of strong state intervention.