Why did Luxembourg’s steel industry decline during the 1970s?

The decline of Luxembourg’s steel industry during the 1970s was primarily driven by a significant slump in worldwide demand for steel. This global downturn caused the industry's contribution to Luxembourg’s gross domestic product to fall.1

In response to this economic crisis, the government implemented measures to help the industry improve efficiency and maintain profitability. By the end of the decade, the consolidation of the sector resulted in ARBED (Aciéries Réunies de Burbach-Eich-Dudelange) SA becoming the country's sole remaining steelmaker.1