After an economic boom from the early 1980s to early 1990s, a slump has hit Turkey's economy and the country's steel industry. A high inflation rate and steel plant strikes have contributed to the downturn. Another contributor is the removal of government subsidies to the steel industry. This, at least in part, was prompted by Turkey's desire to join the European Union (E.U.), for which an unsubsidized and privatized steel - industry is desired. From the early 1980s to the early 1990s, Turkey experienced government induced growth. The steel industry was a major benefactor, and the number of long products minimills grew astonishingly. These privately established plants were set up on attractive tax concessionary terms. They melted subsidized imported scrap, burned assisted energy, distributed products using subsidized transportation, and operated with labor costs that were lower than normal in western Europe.
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