IP/08/289
Brussels, 25 February 2008
European Commission puts focus on competitiveness of metals industries Metal industries in Europe are competitive and rely on innovation and high productivity to maintain their position, but are confronted with a situation in which they are losing their share due to higher constraints, compared to other parts of the world. Keeping a competitive metals industry in Europe is the key objective of a European Commission communication adopted today. It highlights important issues influencing the competitiveness of this sector, such as climate change and other environmental challenges, energy, access to raw materials, research and innovation and trade. Since metals industries are energy intensive industries, special attention is given to the actions provided for in the recent climate change package adopted on 23 January 2008, aiming at avoiding future production taking place in countries with less strict emission limits, as this would have negative environmental and economic consequences. This communication forms a part of the Commission's integrated industrial policy, which consists of horizontal and sectoral measures. Commission Vice-President Günter Verheugen, responsible for enterprise and industry policy said: “Metals industries have a vital contribution to make to the competitiveness of manufacturing industry and jobs in Europe, so it must be able to compete on a level playing field with their global competitors. Maintaining high levels of eco-efficiency and innovation will be crucial for their future success".
The Communication highlights the close links with other important manufacturing industries, such as automotive, machinery or aerospace which depend on the supply of competitive and high quality grades of different metals.
Access to non energy raw materials is a critical issue since EU metals production is highly dependent on imports of ores and concentrates from third countries. The economic development of many emerging economies has contributed to an increase in the demand and prices for metals and metal products and has led to unprecedented pressure on raw materials supplies and prices.
Recycling is a very important issue because production of metals from scrap is much less energy intensive. For instance, the production of aluminium from scrap can consume only 5% of the electricity used when the production is from mineral ore. The use of recycled scrap has increased significantly in the last few decades and represents today between 40-60% of EU metal production.
In its Communication, the Commission identified the following policy issues:
ensuring energy supply availability at competitive prices: public authorities are invited to assess initiatives related to pooled electricity generation, long term contracts and partnerships. The Commission will promote best energy saving practices within the framework of the Competitiveness and Innovation Programme (CIP) meeting climate change and overall environmental objectives: the Commission will explore, together with stakeholders and third countries, options to address competitiveness concerns in the context of further global and EU action on climate change, including the possible role of sectoral agreements based on industry-specific conditions. In the absence of an international agreement, it allows for free allocation of emission allowances up to 100%, considering, in particular, the most efficient techniques research, development and innovation: the Commission encourages metals industries to pursue their policy of using innovation as a driver for competitiveness, inter alia, by implementing major long term projects like the ”Energy saving and ultra low CO2 emissions on steel” (ULCOS), as well as the strategic research agenda developed by relevant European Technology Platforms trade: the Commission proposes to continue to use all existing instruments to address trade practices in violation of international trade agreements and will oppose the use of export taxes on metals and raw materials by its trading partners raw materials: the Commission will present a Communication in 2008 aimed at improving conditions of sustainable access to minerals and secondary raw materials at EU and international level. In preparation for this Communication, the Commission launched a public consultation in January 2008. The results of the consultation will be summarised in a report to be published in the spring of 2008.
Background
The metals industries generate some 5% of the whole turnover of the European manufacturing sector and employ more than 3.3 % of workers in the manufacturing sector (1.1 million workers). The text of the Communication and the Staff Working Document (annex related to it) will be made available at
http://ec.europa.eu/enterprise/steel/index_en.htm Additionally: more data providing a detailed picture of these industries can be found in the Commission Staff Working Document (SEC(2006) 1069, 2.8.2006).
http://ec.europa.eu/enterprise/steel/comm_sec_2006_1069_1_en_document_travail.pdf The public consultation in relation to raw materials is available at
http://ec.europa.eu/enterprise/newsroom/cf/newsbytheme.cfm?displayType=consultation
