Economy, Manufacturing

Belgium is one of the most highly industrialized countries of Europe, largely because of its geographical location and transport facilities. Industrial production increased steadily after World War II (1939-1945) but began to decrease in the 1950s. The establishment of the European Economic Community (EEC) in 1957 and the introduction by the government of an investment-incentive program resulted in a surge in Belgian industry. However, shifts in the world economic picture have brought about a decline in industrial development in Belgium, and in 1999 manufacturing accounted for only 20 percent of total economic activity. Belgium is a major producer of iron and steel, and more than half the total output is exported. About 10.3 million metric tons of crude steel were produced annually in the early 1990s.

The textile industry, dating from the Middle Ages, produces cottons, woolens, linens, and textiles of synthetic fibers. With the exception of flax, all raw materials are imported. Centers of the textile industry are Brugge, Brussels, Limbourg, Ghent, Liege, Kortrijk, and Mechelen. In the early 1990s about 51,900 metric tons of cotton fabrics, 31,900 metric tons of wool fabrics, and 37,100 metric tons of rayon and acetate fabrics were produced annually. Carpet making is an important industry in Saint-Nicolas; Brussels and Brugge are noted for the manufacture of lace and damask.

The Belgian chemical industry leads the world in the production of cobalt and radium salts and also ranks high in the production of fertilizers and plastics. Pharmaceuticals, photographic supplies, glassware, furniture, paper and cartons, and cement are also important manufactures.

The nonferrous-metals industry, supplied by raw materials from Democratic Republic of the Congo (DRC, formerly Zaire), furnishes the metallurgical, chemical, and other industries with a wide variety of metals, including copper, zinc, lead, platinum, germanium, and uranium. The bulk of the metal-manufacturing industry is engaged in the production of heavy machinery, structural steelwork, and industrial equipment. Other important industries are shipbuilding, which is centered in Antwerp, and the manufacture of railroad equipment. The diamond-cutting industry, also centered in Antwerp, is a main source of industrial diamonds.