Nickel in the United Kingdom
- The UK is a major user of nickel. Total UK use in 2002 was 60 kte (primary and recycled nickel units)
which represented around 8% of EU demand. This demand is satisfied through a combination of UK production of
refined nickel, imports, and recycling of existing nickel.
Nickel in the U.K. Value-added
(Euro Million)Employment Direct nickel industry/recycling 300 1,750 “First Use” 700 11,000 Intermediaries 300 7,250 “End Use” 6,300 105,000 Total 7,600 125,000 - Whilst the nickel industry itself is relatively small, it has a significant impact on the UK economy
through its value-chain. Through its critical use in nickel-containing alloys, it has a major impact on
leading UK industries such as stainless steel. In turn, the use of nickel-containing alloys in many important
products manufactured in the UK means that the impact of nickel is substantial in many end-use markets.
- As a consequence, the total value-added in the UK by nickel and its value-chain is estimated to be around
Euro 7.5 billion.
- "First Use" industries add relatively less to the British economy than other countries: 13% in the UK compared with 35% in the rest of the European Union. However, "End Users" add more value in the UK than in other countries in the EU: 83% compared with an average of 59% in the rest of the EU. Within the "End Use" sector, British companies add more value than the European average in two segments - Jet Engines and Commercial Catering Equipment.
Moreover, the direct nickel industry and
the industries in its value-chain that are critically dependent upon it, employ a substantial number of
people. Total employment in the UK in the direct nickel industry, "First Use" industries and Intermediaries,
and product manufacturers that depend on nickel is around 85,000. A further 40,000 jobs have been created in
the economy through income and supplier "multiplier" effects, and capital expenditure effects. Hence around
125,000 jobs are "critically dependent" on nickel in the UK.-
The industry and its value-chain also contribute significantly to the UK economy through high levels of investment. Total research and development by the direct nickel industry and industries critically dependent on nickel is estimated at Euro 650 million. Most of this expenditure is in the Jet Engine sector. Annual capital expenditure by these sectors is estimated at 400 million and total capital employed is Euro 7 billion.
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The nickel industry and its value chain also account for substantial tax revenues. Total taxes (on employment and sales) paid by the direct nickel industry and industries critically dependent on nickel are estimated to be Euro 2.7 billion per annum. This excludes corporate taxes.
Notes
In 2003 ENiG commissioned The Weinberg Group to conduct a comprehensive independent European socio economic impact analysis for the Nickel Industry. The purpose of the study is to gain a detailed and accurate understanding of the importance of the nickel industry to the economic prosperity of Member States. The full report is available to interested parties and a series of summarised fact sheets has been produced. This glossary provides explanations for commonly used terms within the report and fact sheets.
Direct industry: the primary European (mining, refining) nickel industry, the importation of raw nickel, the importation and trading of finished products, transportation of nickel and recycling (this includes collectors, processors and scrap dealers)
End use: all end use industry segments where nickel is an essential component in either the production process or the end product itself. It is considered essential if the product would not perform either at all or as well without nickel or where exclusion of nickel would increase the price significantly
First use: industries where nickel is alloyed to produce stainless steel, and alloy steels and nonferrous alloys plus foundry and plating
Nickel dependent products: Products where a nickel containing alloy significantly transforms either the process or end product and where this effect cannot be achieved in any other way or, if an alternative is used, performance is significantly reduced, the process would be substantially disadvantaged or the price would be significantly higher
Supplier “multiplier” effect: the effect by which, for each expenditure on goods or services by companies and people in the nickel industry, additional jobs are created
Value-added: the amount by which the value of an article is increased at each stage of
its production, excluding the initial cost of the nickel. Expressed another way, value added is the turnover
of companies in the nickel and nickel using industries less imported raw material costs.
The full Weinberg report on the socio-economic impact of the nickel industry in the EU is available on
request.
For further information contact:
Rosemarie Evans
Telephone: 44 1527 584777
revans@nickelinstitute.org
Paola Di Discordia
Téléphone : 32 2 775 6313
didiscordia@euronickel.org
