The European lime outlook

OCTOBER 2014

ILA, GENERAL ASSEMBLY, VANCOUVER

MS. ELENI DESPOTOU

Overview of the presentation

• EuLA: who are we?

• EU lime markets

• Quicklime production

• EU lime industry challenges

• Conclusions

Who we are:

The European Lime Association, created in 1990, is the voice of the European lime sector.

• EuLA provides sector-base representation for the lime industry at European level, including technical, scientific and administrative support to its members on non-commercial issues. This includes:

• Addressing the current complex legislative framework;

• Speaking with one voice on scientific and technical dossiers;

• Managing horizontal sectorial issues of common concern including sustainable development, Corporate Social Responsibility, Health & Safety, Environmental Protection, Energy, Communications and end-of-use product legislation;

• Promoting Best Practices.

EuLA Members

Country National association

Austria Fachverband der Sten-und keramischen industrie

Belgium FEDIEX

Bulgaria Plena Bulgaria OOD

Czech Republic Czech Lime Association

Denmark Faxe kalk

Estonia Nordkalk

Finland Finish Lime association c/o Nordkalk Corporation

France Union des Producteurs de Chaux

Germany Bundesverband der Deutschen Kalkindustrie

Greece Hellenic Lime Association

Hungary Carmeuse Hungaria Kft

Ireland Clogrennane Lime Ltd

Italy CAGEMA

Norway Franzefoss Bruk A/S

Poland The Polish Lime Association

Portugal Lucical/ Calcidrata

Slovak Republic Carmeuse Slovakia

Spain ANCADE

Sweden Swedish Lime Association c/o SMA Svenske Mineral AB

Switzerland Kalkfabrik Netstal AG

United Kingdom British Lime Association

What EuLA represents

Structure

General assemblyBoard

Bureau

Technical & Environment Committee

“Task Forces”

Lime Application Committee

“Task Forces”

Standardisation committee

EU Lime Markets

EU lime industry challenges

• Limited growth or no growth• Stringent legislation (climate change, environment, energy)• EU policy environment • Neighbourhood political environment• High energy costs and cost competitiveness

Result• Shrinking of the industry

2007 2008 2009 2010 2011 20120

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Source: CITL

Lime sector – Total CO2 emissions

Source: EuLA (database)

2010 2011 20120

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Total Process CO2 emissions (tons) Total Combustion CO2 emissions without biomass (tons)

Quicklime – Process & Combustion CO2

Manufacture of lime - Average share of CO2 emissions

Manufacture of lime - fuel mix

EU legislation

• EU wordlwide pionner on climate change related legislation

• New climate and energy package 2030- 43% GHG emissions reductions for industry (binding)- 27% RES contribution (binding at EU level)- 30% Energy efficiency (indicative)

VS

- 20% target for industry contribution to the EU GDP. (aspirational)

Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

Energy and costs competitiveness

• As of 2011 the EU dominates the export market for energy-intensive goods, accounting for more than two-thirds of export value, which makes it the largest export region for energy intensive goods.

• One can expect that regional price disparities increase the risk of reduced production levels and investment in higher priced countries and bring changes in global trade patterns, in particular affecting industries that have a high share of energy costs and are exposed to international competition because their production is easy and relatively cheap to transport.

• This is supported by analysis undertaken by the IEA in the 2013 World Energy Outlook, which shows that persistently high energy price disparities can lead to important differences in economic structure over time and have far-reaching effects on investment, production and trade patterns.

CONCLUSIONS

• Stagnante market due to stagnante economy

• Limited new Investment

• Limited perspective to reverse the trend in a short term

• New mandate for the EU institutions in place…

THANK YOU!

www.eula.eu