Socio-economic Reports Available On-line
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THE MAGAZINE DEVOTED TO NICKEL AND ITS APPLICATIONS |
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GERMANY IS A MAJOR USER of nickel, accounting for 23% of total European Union demand. |
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Nickel Magazine, November 2004 -- In 2003, the Nickel Institute commissioned a report into the socio-economic aspects relating to nickel in Europe. The report, produced by The Weinberg Group, an international science and regulatory consulting firm, gives the first independent assessment of the socio-economic significance of the full nickel value chain to the economic prosperity of the European Union (EU).
The report concluded that the overall value of the EU nickel business is much more important than the usual political perception because much of this value is in so-called first use and end use industry.
In Germany, for example, companies in the end use sector add most value to the nickel value chain (65%). The most important segments are gas turbines and process plant equipment for the food and drink industry (where German companies have a 35% share of the market), automotive diesel turbo chargers and high precision replication of CDs and DVDs (where German companies have a 30% market share).
- Germany is a major user of nickel. Total German use in 2002 was 165,000 tonnes (primary and recycled
nickel units) which represented around 23% of total demand in the EU. This demand is satisfied through a
combination of imports of refined nickel and recycling of existing nickel.
- Whilst the nickel industry itself is relatively small, it has a significant impact on the German economy
through its value-chain. Through its critical use in nickel-containing alloys, it has a major impact on
leading German industries such as stainless steel. In turn, the use of nickel-containing alloys in many
important products manufactured in Germany means that the impact of nickel is substantial in many end-use
markets.
- As a consequence, the total value-added in Germany by nickel and its value-chain is estimated to be Euro
11 billion.
- 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 Germany in the direct nickel industry,
"First Use" industries and Intermediaries, and "End Use" industries that are critically dependent on nickel
is estimated to be approximately 125,000. Some 60,000 additional jobs have been created in the economy
through income and supplier "multiplier" effects and capital expenditure effects. Hence around 185,000 jobs
are "critically dependent" on nickel.
- The industry and its value-chain also contribute significantly to the German economy through high levels
of investment. Total research and development by the direct nickel industry and industries critically
dependent on nickel is estimated to be Euro 500 million. Annual capital expenditure by these sectors is
estimated to be Euro 600 million and total capital employed is estimated to be Euro 10.5 billion.
- 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 3.8 billion. This excludes corporate taxes.
MAP: Constructive Communications
 Summaries of socio-economic reports of 15 EU countries are available at: |
