RHI at a Glance
| Karl-Heinz Florenz, Member of the European Parliament, and RHI CEO Thomas Fahnemann call for pan-European raw material policy 10/06/2009 |
 |
Karl-Heinz Florenz, Member of the European Parliament, and RHI CEO Thomas Fahnemann call for pan-European raw material policy:“Europe must react quickly!”
- Raw material intensive European companies need secure raw material supply
- Raw material strategy must lead to concrete measures
- List of critical raw materials must result in measures quickly
- Trade agreements must be made with countries rich in raw materials
- Industry location Europe must be secured
“The European Union needs a common raw material policy designed for the long-term”, Thomas Fahnemann, CEO of the refractories world market leader RHI AG, demanded today at a press conference held together with European Parliament Member Karl-Heinz Florenz in Brussels. “The global race to secure raw materials has already begun”, says Fahnemann. Karl-Heinz Florenz, member of the influential Environment Committee of the European Parliament, adds: “The raw material strategy of the EU presented at the end of last year is a good basis. We must now build on this basis quickly, and we must be aware of the urgency of this matter: If there is no more oil, we can no longer drive cars in Europe. But if there are no more metals and minerals, cars can no longer be produced at all.” Fahnemann adds: “It is crucial not to drop behind. We have to secure Europe as a location for industry in the long term.”
Europe’s raw material dependence
“In Europe, many raw materials have long become scarce, a trend that has been intensified by new technologies. European industry is de facto dependent on foreign raw material sources. For companies this often means that supply depends less on the price, but rather is a question of availability”, says Fahnemann. Numerous strategic export restrictions for raw materials and the emerging markets’ hunger for raw materials are exacerbating the situation further.
China and the USA have already reacted. While China purchases aggressively and builds up raw material stocks, the United States works on a national raw material report which defines critical raw materials and derives the measures required.
A challenge for politics and the economy
RHI CEO Fahnemann does not intend to release companies from their responsibility. Rather, he wants to actively contribute. “As an industry group with deep European roots and processing raw materials, this issue is of great concern to us, and we intend to address it together with our partners in politics”, Fahnemann explains, and outlines his demands in this context:
- rapid and efficient preparation of a list of critical raw materials and derivation of the corresponding measures
- long-term trade agreements with countries rich in raw materials
- long-term and strategic EU raw material policy with clear competences at the EU and member state levels
- clear commitment to the recycling of raw materials in combination with a cautious use of resources
- raw material security as a focal point when considering new legislation
Raw material strategy as foundation of a new European raw material policy
Florenz clarifies: “I clearly subscribe to the three main objectives of the EU strategy: 1. access to raw materials in the world market on the same conditions for all market participants, 2. framework conditions that promote permanent supply with raw materials from European sources and 3. increasing the efficiency of resources and promoting recycling in the EU! However, so far the strategy has not been anywhere near meeting these goals. Here we must take concrete measures, and we must do so quickly! Toothless tigers are no use to anyone!”
“It is now time to act, as demand for raw materials certainly won’t drop in the future”, says Fahnemann. “European companies such as RHI need an EU-wide raw material policy in order to secure their raw material supply in the long term and to maintain Europe as a location for production”, Fahnemann adds.
In conclusion, Fahnemann and Florenz point out: “European companies are already setting new standards for sustainable production. We must not put this competitive advantage at stake. It is essential to introduce a European raw material policy!”
Climate protection and resource policy go hand in hand
Florenz is convinced that the discussion about climate protection is a valuable contribution: “The discussion about the reduction of greenhouse gas emissions is important and correct. However, CO2 only represents the tip of the iceberg in my opinion. The problem of the raw materials lies hidden underneath the surface.”
Florenz, who has also accompanied the climate negotiations of the UN for years, considers sustainability the coming challenge. “In terms of sustainability, the economy and the environment intertwine. For each tonne of scrap that is used in steel production, at least one tonne of coal and 3.5 tonnes of CO2 are saved. This is a benefit for all those involved: we save expensive energy, can produce more cheaply, cause fewer emissions and are moreover less dependent on raw material imports. So we catch three birds with one stone!"
Background:
Economic motor jeopardised
Currently more than 450 export restrictions exist for roughly 400 raw materials worldwide. This is increasingly becoming a problem for the European Economy because the industry location is in danger without sufficient raw material security. 26.6 percent of the gross value added in the EU comes from industry. Taking into account related sectors, this figure exceeds 50 percent. Traditional industrialised countries such as Austria could be hit even harder: nearly 60 percent of the value added and 55 percent of the jobs are attributable to industry and production-related services. If they had to shift to countries rich in raw materials due to shortages, growth and prosperity would be jeopardised in many EU member states.
China dominates raw material markets
China is the number one in the international raw materials market. It is the world’s largest producer of coal, manganese, molybdenum, wolfram, aluminium, lead, zinc, tin, magnesia, bauxite, and graphite. For nearly all other materials, China ranks at least among the top 10. Just how dependent on China industry has become can be illustrated using the example of rare earth elements. The basic material for many products of the “green industry” is extracted almost exclusively in the People’s Republic of China. Export volume has been cut consistently for the past three years. A further shortage could force producers to open locations in countries like China in order to be able to work efficiently.
Raw material supply as the key to the industry location Europe
Without a long-term strategy, shortages of supply are to be feared in the EU. If per capita consumption in the emerging markets approximates the level of industrialised countries, metal consumption alone could increase six-fold.
About RHI
RHI is the world market and technology leader in high-grade ceramic refractory products and services. Its headquarters is based in Vienna, Austria. The Group employs roughly 7,800 people worldwide at 32 production sites (among them 10 European countries, including Germany) and some 70 sales offices. In 2008, RHI generated revenues of EUR 1.6 billion. The RHI share is listed as an ATX-share in the Prime Market of the Vienna Stock Exchange.
About Karl-Heinz Florenz
Karl-Heinz Florenz is a farmer and businessman and has represented the Lower Rhine region in the European Parliament since 1989. He is a member of the Committee on Environment, Public Health and Food Safety and the Delegation for relations with the USA.
