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The European Cement Industry – Strategic Contributor to Europe`s Future

The report highlights that the European cement and concrete industry contributes to the economy with a total production value of EUR 74 billion, a value added of EUR 22 billion as well as ~366 000 jobs (data for cement and concrete for EU-27 and Turkey). It also underlines the fact that the industry plays a vital role in generating growth, particularly given that investment in infrastructure has one of the highest multiplier effects on the economy as it can duplicate the initial spending over several quarters, and triplicate it over a period of 20 years. In this respect, the study indicates that the cement industry is currently under pressure due to a combination of the macro-economic environment, rising energy prices in Europe and the lack of a consistent regulatory framework that allows for long-term investment planning. The sector is no longer obtaining reasonable returns, as average return on capital over the last four years has been between 3–5 % below the cost of capital. The study also highlights the unique contribution of the cement sector, as a competitive local industry, to Europe’s priorities in terms of economic growth, resource- and energy-efficiency (both in processes and products), innovation and biodiversity. (3/2013)


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