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ACTIVITY

REPORT 2014
cembureau
The European Cement Association based in Brussels is the representative organisation
of the cement industry in Europe. Currently, its Full Members are the national cement
industry associations and cement companies of the European Union (EU, with the
exception of Cyprus, Malta and Slovakia) plus Norway, Switzerland and Turkey. Croatia
and Serbia are Associate Members of CEMBUREAU.

The Association acts as spokesman for the cement industry before the EU institutions
and other public authorities, and communicates the industrys views on all issues and
policy developments with regard to technical, environmental, energy and sustainability
issues. Permanent dialogue is maintained with EU institutions, international authorities
and other international associations.

Serviced by a multi-national staff in Brussels and with the input from its Members via
four Working Groups as well as a number of Task Forces set up on an ad hoc basis
and directly reporting to the appropriate Working Group, CEMBUREAU takes action in
relation to all developments at European level affecting the cement industry.

CEMBUREAU plays a significant role in the world-wide sustainable development of


cement and the ready-mixed and precast concrete industries in co-operation with
Member Associations and other relevant organisations. The Association regularly
co-hosts conferences on specific issues aimed at improving the market perception of
the concrete industry and promoting the use of generic cement and concrete products.
In addition, the Association regularly commissions studies to evaluate specific issues
of importance to the industry.

Association
Europenne
du Ciment
The European
Cement
Association

Rue dArlon 55 BE-1040 Brussels


Tel.: + 32 2 234 10 11 Fax: + 32 2 230 47 20
secretariat@cembureau.eu www.cembureau.eu
ACTIVITY REPORT 2014

TABLE OF CONTENTS

4 2014: Message from the Chief Executive

7 2014: Message from the President

10 The Economy
The World
Europe

24 Emissions reporting - GNR & beyond

26 CEMBUREAU main issues

34 Energy
CemProspects
The Energy Market 2014

36 Events

38 About CEMBUREAU

41 Members & Associate Members

42 Abbreviations glossary

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ACTIVITY REPORT 2014

2014: MESSAGE FROM


THE CHIEF EXECUTIVE
2014 marked a turnaround both in policy-thinking
and our industry. From a policy perspective, it was
refreshing to see a strong focus by the European
institutions on competitiveness, innovation and
energy. A new term saw the day of light: industrial
competitiveness will be mainstreamed across
all EU policy areas. The priority areas of the new
European Commission, jobs, growth, investment,
climate and energy, all with a strong underlying
focus on better regulation, are part of that same
coordination effort and are promising in bringing
Europe back on track.

What was important from an industry perspective


1
was the Commissions Decision of 27 October
2014 that confirmed the cement sectors exposure
to carbon leakage for the 2015-2019 period. This
provides the legal certainty and stability that
industry has been asking for. It also allows us
to reflect more thoroughly and constructively on
Koen Coppenholle the challenges our society faces and to which
Chief Executive policymakers need to provide solutions.

We are strongly motivated to constructively engage


with policymakers. It is our belief that the cement
and concrete industry which employs 545,000
people and adds EUR 56 bn to the European
economy, will be a driving force in moving Europes
agenda forward and in helping to build the schools,
hospitals, offices and infrastructure of tomorrow.
With its base firmly established in Europes local
economies, from quarry to end-product, our sector
is the backbone of construction in Europe, which
accounts for 10% of GDP, and promotes local
growth and jobs while bringing local products to
local markets.

1
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and
of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period
2015 to 2019

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ACTIVITY REPORT 2014

Health and safety: our Cement and concrete at the


responsibility heart of the circular economy
First and foremost, it is essential to remind all our According to the European Commission, each
stakeholders that the cement industry is operating person in the EU today consumes 15 tonnes of
in Europe to high standards of health and safety. materials annually while generating 5 tonnes of
The cement industry is one of the key partners waste, with half going to landfill. The Commission
turning the European Social Dialogue Agreements also emphasises that energy recovery will have a
into a tangible reality through its participation in role to play with regard to non-reusable and non-
The European Network for Silica (NEPSI) which recyclable waste. It is further keen to stimulate
is a European network of employer and employee markets in recycled materials derived from
organisations set up to educate and train workers construction and demolition waste and develop
and ensure the dissemination, at plant level, of the a common EU assessment framework for the
best practices relating to the possible exposure to environmental performance of buildings.
respirable crystalline silica. In 2014, CEMBUREAU
was proud to report on a 100% coverage of sites CEMBUREAU has worked hard to refine its
with an improvement across all of the major Key messaging on the resource efficiency agenda.
Performance Indicatorss (KPI), and that 98.7% With a view to position co-processing higher on
of employees potentially exposed are covered the waste agenda, this unique process is now
by a risk assessment. In addition, the percentage clearly promoted as a combination of both material
of employees covered by exposure monitoring recycling and energy recovery. Today, alternative
as well as the number of employees trained has fuels account for 34% of the cement industry fuel
expanded over the years. In matters of health and mix and, in line with our Roadmap "The role of

safety, cement companies have a proven track Cement in the 2050 Low Carbon Economy", the
record of sharing best practices, raising awareness aim is to take this up to 60% by 2050. This would
with the workforce through targeted information lead to a 27% reduction in fuel CO2 emissions. In
campaigns, designing interactive compliance tools addition, in 2012 the industry saved 6Mt of raw
and all of that in a spirit of good cooperation with materials by using alternative raw materials.
the trade unions.
Further downstream, the end product of our
Starting from the principle of responsible care for industry, concrete, is fully recyclable either into
its workers and for society at large, the cement new concrete or in other applications such as road
industry will help governments to address the base. The cement and concrete sector are ready
challenges society faces. These challenges to assess with governments how our business
have been laid out in several policy documents models can foster an increased recycling rate
published over the year. of construction and demolition waste and how
local building codes can be revised to encourage
increased levels of recycled content. The sector
will also be fully supportive of a landfill ban for
recoverable and recyclable waste as this will
allow continued access to materials that allow the
cement industry to continue playing its essential
role in the circular economy.

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ACTIVITY REPORT 2014

A competitive, full supply chain All these developments are taking place against an
economic background that remains challenging.
oriented policy framework The cement and concrete industry is ready to
play its part in renovating and rebuilding Europes
Bringing about a circular economy requires that
houses, buildings and infrastructure and this in line
all operators in the supply chain are aligned
with its long-term standards of high performance.
on the same goals. Regulatory initiatives on
The industry needs a solid basis, however,
resource efficiency and on the circular economy
which means a predictable set of consistent
cannot be considered separately from an overall
and coordinated rules that take into account the
climate & energy policy. Indeed, concrete can
full supply chain. Our industry is also turning to
contribute to improving energy efficiency and
policymakers to ensure that Europe strikes a
lowering emissions and it can be fully recycled
workable balance between the justified need to
at the end of its life. An optimal result will only be
ensure a strong environmental performance of our
achieved, however, when the circular economy
companies while ensuring they can continue to
considerations are taken up at the design stage
compete on a global level playing field.
of a building and are part of a whole life-cycle
approach to buildings.
CEMBUREAU will constructively engage in
building this policy framework and looks forward
Likewise, the debate on CO2 emissions and, more
to discussing its reflections on the energy and
broadly, climate change legislation, should not
climate policy, including a reform of EU ETS, for
stop at the factory gate. Legislation that focuses
the period after 2020.
on only one part of the supply chain and ignores
the environmental benefits of the products at the
Personally, I feel privileged to work with a team
end of the full supply chain, results in misguided
and members that are all strongly dedicated to
policies and missed opportunities to promote the
promote the unique strengths of our industry to
strong contribution of energy-intensive industries
policymakers. Thank you all for the constructive
to the welfare of Europes citizens. Whilst it is a
comments, for keeping up a high level of expertise,
fact that the embodied energy represents only
attendance and interest in our meetings, for the
5-10% of the total energy use over the life cycle
continuous reflection and out-of the box thinking
of a building, we cannot ignore that cement-
and for the strong personal relationships: all of
related CO2 emissions do account for around 5%
these turn a job into a passion!
of global emissions. Here as well, our industry
is ready to take responsibility. Over the past 60
years, we have succeeded in achieving a 44%
reduction in CO2/m3 concrete. The Roadmap "The
role of Cement in the 2050 Low Carbon Economy"
does not only highlight industrys technological
advances over the past 20 years that have all
contributed to improved sustainability of our
businesses in terms of energy-efficiency and
reduction of emissions, it also demonstrates that
innovation is at the core of the cement industrys
activities. Innovation initiatives range from a
constant search to improve our knowledge on the
use of alternative raw materials to research into
innovative low-clinker cements and concrete to
continuous improvements of thermal efficiency in
our plants. As a member of the Technical Advisory
Board of the European Cement Research
Academy (ECRA), CEMBUREAU has been
strongly involved in research and pilot testing on
carbon capture projects for the cement industry
whereby reuse is investigated as an interesting
promising avenue.

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ACTIVITY REPORT 2014

2014: MESSAGE FROM


THE PRESIDENT
On 27 May 2014, CEMBUREAU, along with
the precast (BIBM) and ready-mixed (ERMCO)
associations, launched The Concrete Initiative
at an event where industry experts, NGOs and
policymakers engaged in a thought-provoking
dialogue on how concrete can contribute to a more
energy and resource-efficient society. The key
messages were further conveyed to and tested
with Members of the newly elected European
Parliament at a very-well attended evening dinner
in November in Strasbourg.

Why The Concrete Initiative?


1. It may be obvious, but societys use of
structures in which concrete is a constituent
is the ultimate end use of cement. Of course,
we in the industry all recognize concretes
Peter Hoddinott unique properties and massive contribution
both in functionality and to the circular
President economy. We need to present this compelling
case for concrete, which levels the playing
field and allows policymakers to realize
their aims through increased concrete use
for a low carbon economy, for much greater
energy efficiency, for affordable housing
and infrastructure and for safe and resilient
buildings.

2. Much good work on this has been done


individually at national association level, and
this can be shared across our sector.

3. Concrete construction can be aesthetically


dazzling and dramatic, while also fulfilling
societys needs at the most basic level

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ACTIVITY REPORT 2014

for reasonably priced shelter. This means Stakeholder Feedback The


that great scope exists to boost the image
of concrete, and thereby also of cement.
Four Rs:
This view is not always shared at regulator,
Based on the invaluable input we received from
prescriptor and specifier levels, and not even
stakeholders so far, we have structured and will
by normal citizens. If we want to improve the
continue the dialogue around what we like to refer
image of our products and increase their use,
to as the four Rs:
we have a duty to open their eyes.

Recycling: approximately one third of


all waste in Europe comes from
The Aims: construction and demolition, amounting
to 450Mt/year, of which only one third
Through The Concrete Initiative, the cement and is recycled. We share the European
concrete industry aims to demonstrate that concrete Commissions view, expressed in its initial
enables innovative solutions for society and the 1
Circular Economy package that we need
safe, long-lived, low carbon built environment of to increase the recycling of construction
tomorrow. This is achievable through building on and demolition waste. Producing recycled
the historic improvements in manufacturing and construction materials, aggregates
product performance, reinforced by cutting edge and fill from demolition waste is now
R&D plus inspired architectural and engineering increasingly mainstream and built into
design. Together, this recipe is focused on the our business models and we have made
delivery of concrete-based construction, which can public commitments to grow this business
be infinitely versatile, totally functional and highly strongly. Meanwhile for the combustible

cost-effective, yet potentially presenting itself in portion of wastes, we have replaced


dramatic, striking and aesthetically memorable around 1/3 of all the fossil fuels to make
structures. cement by alternative fuels from waste and
all this has taken place since 1990. Further
The key question for us is: how can we transform considerable advances are foreseen in
the dreams of architects, engineers, town all these areas in the Roadmap "The
planners and housebuilders into reality in order role of Cement in the 2050 Low Carbon
to provide structures and neighbourhoods which Economy".
are environmentally friendly, safe, durable and
transformatory to citizens and neighbourhoods Regulation: concrete recycling will be
whether as individual homeowners or as facilitated if a whole life performance
users of infrastructure. In other words, how approach is embedded in regulation and
does concrete contribute to each of the three applied to buildings. Another critical facet
pillars of sustainability: economic, social and of regulation relates to building safety.
environmental? According to the European Fire Fighters
Union (one of our stakeholders), 2 million
house fires break out across Europe each
year, resulting in deaths of around 4000
people and 70000 citizens hospitalized
with serious injuries. Fire fighters are
becoming increasingly concerned by the
speed at which fires spread in a building,
how resistant the building materials are in
1
Moving towards a Circular Economy (July 2014)

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ACTIVITY REPORT 2014

the event of a fire, how much time people which acknowledge and leverage the unique
have to evacuate a building, and the toxicity contribution our sector and its highly versatile
of the gases. Overall, they are looking for product for Europes future, safe, low carbon built
fire safety legislation to ensure that modern environment. Following the launch in 2014, 2015
construction methods and materials do not is the year where we aim to create compelling
impinge on the fire safety of buildings. fact-based cases for regulators and stakeholders
Concrete scores very well in this regard! which can ultimately see life cycle analysis, thermal
inertia, fire safety parameters etc embedded in
Reducing Emissions in Europe: in regulations, norms, codes and labels, all with
Europe, buildings consume around 40% the aim to level the playing field for the choice by
of energy (and account for 36% of CO2). specifiers of construction materials. The possible
The energy consumption of a conventional climate agreement at the end of 2015 in Paris
building is typically 150-200kWh/m2/year. could also further position concrete as a major
Todays concrete allows a 75% reduction solution to energy efficiency challenges in EU.
of that energy consumption thanks to
its thermal mass. When the air is warm, This flagship initiative has taken off successfully
concrete absorbs heat and lowers room thanks to the innovative thinking and leadership
temperatures and when temperatures of Working Group D and the project team led by
fall, concrete releases heat. This natural Cdric De Meeus and Denis Berthon, in close
air conditioning effect, when linked with cooperation with the CEMBUREAU Secretariat
intelligent concrete building design enables and more specifically Jessica Johnson and Karl
buildings to be constructed that consume Downey.
50kWh/m2/year or less. The potential
for transforming Europes energy bill is I also wish to express my warmest thanks for the
immense. unrelenting efforts and efficiency of the whole
CEMBUREAU staff in identifying and analysing
Renovation and rebuild: 35% to 42% of policy initiatives of relevance to our sector and in
Europes enormous building stock (25 bn shaping the CEMBUREAU messages with a strong
m2 for 510 MM people) dates back to the dedication and attention to detail. Finally, kudos is
pre-1960s and is only gradually (1%/year) also due to all members of the Working Groups
being replaced by more energy efficient and Task Forces in CEMBUREAU, who combine
buildings. For every 20 newly erected their day jobs with enthusiastic and generous
buildings only one is demolished. As a engagement in the Associations work. Finally, a
result, energy consumption improvements word of thanks to you to all for positioning cement
as referred to above, are progressing at a and concrete as the backbone for Europes future!
snails pace. The concrete sector is ready
to contribute to a more energy efficient
housing environment through a two-prong
approach whereby houses are rebuilt
with strong gains in multi-functionality
and, at the same time, existing buildings
are renovated through the application of
innovative techniques such as concrete
panels retrofitted to the exterior of buildings
with a sandwich of insulation, achieving the
same energy efficiency performance in a
cost effective way.

Conclusions and Recognition:


2014 has been the year where we put the
messages in place, launched the Concrete
Initiative and initiated a dialogue with stakeholders.
The challenge ahead of us lies in reinforcing
that dialogue and securing wide sectoral and
stakeholder support for well-defined and actionable
policy requests to shape EU and national policies

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ACTIVITY REPORT 2014

THE ECONOMY
Source for all charts: CEMBUREAU

The World
World Production and World Trends

In 2014, the world economy continued to


be affected by some global macroeconomic
uncertainty, although certain key developments
reshaped the global outlook over the fourth quarter
of the year, resulting in clear signs of improvement
in economic sentiment and higher growth
perspectives for 2015 in most regions. Oil prices
1
have decreased by -55% since June 2014 as a
result of persisting demand weakness in advanced
economies, therefore putting tough pressure on
some major oil-producing emerging economies
(BRICS, Venezuela). The announcement and the
subsequent launch of the European Central Banks
(ECB) Asset Purchase Programme in January
2014 (i.e. Quantitative Easing, QE) has led to a
considerable depreciation of the EUR vs. other
major currencies, notably the US$ (with a nominal
decrease of the EUR/US$ exchange rate of 17%
since June 2014) and the CHF. In parallel, the QE
carried out by the Federal Reserve (FED) in the US
is expected to come to a gradual end in 2015 (i.e.
tapering) with expectations of higher key interest
rates in the US and subsequent appreciation of
the US$. The European QE has also triggered
expectations for further decreases in interest rate
levels, resulting in a lower sovereign debt burden
and lower long-term interest rates on bonds, which
is likely to boost private and business investment.
However, economic performance continued to
diverge amongst the different regions of the world,

1
Source: Energy Internal Administration (www.eia.gov). The spot price of Brent Europe has been used as reference

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ACTIVITY REPORT 2014

with emerging economies continuing to clearly global cement production, compared to 58.3% in
outperform advanced economies. Domestic 2013. Without taking into account China, global
demand in emerging economies slowed down and cement production increased year-on-year by
partly offset the subdued demand in advanced +11.3%, gaining some speed compared to 2013
economies, where exports (particularly for EU (+9.3%). As in previous years, cement production
economies) continued to provide the strongest volumes in the G20 emerging economies clearly
contribution to GDP growth. In 2014, the US outperformed those of mature economies. In
economy recorded its fourth consecutive year aggregate terms, emerging countries recorded
of growth and gained momentum as real GDP a +13.7% growth year-on-year, compared to an
increased by +2.4% (+2.2% in 2013), continuing increase of +2.1% in G20 countries. According
to outperform the EU which experienced a to provisional figures, the highest growth rates
moderate economic growth of +1.3% compared were recorded in the Russian Federation and
to the stagnation recorded in 2013. In the EU, India, whilst cement production experienced a
the negative economic cycle bottomed out in Q3 recession in Argentina and South Africa. Amongst
and Q4, resulting in an end to the recession for the G20 countries, the recovery in cement
many EU Member States. This paves the way for production was widespread across all countries,
expectations of growth gaining momentum in 2015, resulting in outstanding annual performances in
despite widening gaps in economic performance the UK, Canada and the US (with increases of
between EU Member States, with unemployment +8.2%, +5.8% and +4.9% respectively). The only
rates still at record highs. The economic outlook exception was South Korea, which recorded a
in the EU is expected to improve substantially decrease of -0.4%. European members of the G20
during 2015 as a result of the aforementioned recorded mixed performances, just as they did in
unprecedented action carried out by the ECB, and 2013.
the combination of the fall in oil prices, interest

rates at record lows and EUR depreciation. In Production continued to increase in 2014
Japan, the recovery lost ground as real GDP rose compared to the previous year in South America,
by +0.4% (+1.6% in 2013). 2014 global output Africa and Asia. These regions were responsible
expanded by +3.3% (just as it did in 2013) whilst for 4.4%, 4.8% and 80.4% of world cement
in developing countries the real GDP growth rate production, respectively. The CEMBUREAU
attained +4.4, which is less vibrant than the +4.7% Member countries accounted for 5.5% of global
increase recorded in 2013. In 2014, economic production (5.8% in 2013) whilst the proportion
growth in advanced economies accelerated, as it of global production in the EU Member States
rose from the +1.3% recorded in 2013% to +1.8% remained the same as in 2013, i.e. 3.7%.
in 2014.

Global 2014 cement production is estimated at


4.3 billion tonnes (Bt), translating into a +6.7%
2
increase compared to the 4Bt recorded in 2013 .
This figure reflects the positive developments in
cement demand in major emerging economies.
However, China slowed down considerably
after the spectacular year-on-year increase
of +10.4% in 2013, recording a growth of only
+3.3%. In 2014, China represented 56.5% of

2
In detail: 4,312 million tonnes in 2014 vs. 4,043 in 2013

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ACTIVITY REPORT 2014

World cement production by region - Evolution 2001-2014


(2001=100)

350
Af rica America Asia

CIS Europe Oceania

300

250

200

150

100

50
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

World cement production 2014, by region and main countries, %


4.3 billion tonnes

CEMBUREAU, 5.5 Europe (excl.


Oceania, 0.3 CEMBUREAU), 0.2
CIS, 2.4
America (excl.
USA), 4.6

USA, 1.9

Af rica, 4.8

Asia (excl. China, China, 56.5


Japan, India), 15.5

India, 7.0

Japan, 1.4

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ACTIVITY REPORT 2014

Main world producers - The G20 Group


Cement production (Million tonnes)
Country 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014
China 661.0 1,236.8 1,361.2 1,388.4 1,644.0 1,881.9 2,063.2 2,137.0 2,359.0 2,438.0 p
India 102.9 159.0 170.5 185.0 205.0 220.0 270.0 239.0 272.0 300.0 p
European Union 225.6 262.3 269.1 250.8 209.0 192.1 191.6 170.5 157.5 159.4 p
USA 88.9 98.2 95.5 86.3 63.9 65.2 68.6 74.0 77.2 81.0 p
Brazil 39.4 41.4 45.9 51.6 51.7 59.1 63.0 68.0 71.9 72.0 p
Turkey 30.0 47.4 49.3 51.4 54.0 62.7 63.4 63.9 72.7 71.2
Russian Federation 28.7 54.7 59.9 53.5 44.3 50.4 56.1 53.0 55.6 68.4 e
Japan 79.5 73.2 71.4 67.6 59.6 56.6 56.4 59.3 61.7 62.0 e
Korea, Rep. of 52.0 49.2 52.2 51.7 50.1 47.4 48.2 46.9 47.3 47.1
Saudi Arabia 20.0 27.0 30.3 37.4 37.8 42.5 48.0 43.0 48.0 51.8 p
Indonesia 31.1 33.0 35.0 38.5 36.9 39.5 45.2 53.5 52.0 54.2 e
Mexico 33.2 37.9 38.8 37.1 35.1 34.5 35.4 36.8 37.0 39.4 e
Germany 32.1 33.6 33.4 33.6 30.4 29.9 33.5 32.4 31.5 32.0 p
Italy 39.8 47.8 47.4 43.0 36.3 34.4 33.1 26.2 23.1 21.4
France 19.1 22.0 22.1 21.2 18.1 18.0 19.4 18.0 17.5 16.4
Canada 12.1 14.3 15.1 13.7 11.0 12.4 12.0 12.5 12.1 12.8
Argentina 5.5 8.9 9.6 9.7 9.4 10.4 11.6 10.7 11.9 11.4
South Africa 8.4 13.1 13.7 13.4 11.8 10.9 11.2 13.8 14.9 13.8 e
Australia 6.8 9.2 9.2 9.4 9.2 8.3 8.6 8.8 8.6 9.0 e
United Kingdom 11.9 12.1 12.6 10.5 7.8 7.9 8.5 7.9 8.5 9.3

Notes: p: Preliminary - e: Estimate

Europe
Compared to 2013, and according to the latest marking the end of the three-year recession that
data available, 2014 cement production in the culminated in annual drops of some -11% and
CEMBUREAU Member countries recorded a very -7.6% in 2012 and 2013. However, the cumulative
moderate recovery, rising by +0.3% in annual peak-to-trough fall since 2007 (the year prior to the
terms after the drops recorded in 2013 and 2012 onset of the economic crisis) in cement production
(-1.4% and -8.2% respectively), reaching 235.5 for the EU28 is -50.5%.
million tonnes (Mt). Individual European markets
recorded mixed performance. Spain recorded Total 2014 clinker and cement exports from the
positive growth in cement production (+5.5%) after CEMBUREAU Member countries fell by -2.6%
the harsh recession experienced in previous years. on a yearly basis, down to approximately 46Mt,
On the other hand, Italy continued to experience further to the moderate drop of -1% recorded in
a sharp recession in cement production (-7.4% 2013. Contrary to previous years, the year-on-
further to -12% in 2013), as did France (-6% year change in imports was positive, i.e. by +1.3%,
further to -3% in 2013). Germany experienced a reaching 18Mt. In 2014, clinker represented
recovery after the temporary year-on-year drop 27.4% and 13.1% of total export and import flows,
3
in 2013 (+1.8% further to -3% in 2013) , Cement respectively.
production improved in several Eastern European
countries, with bullish performances in terms 2014 developments in cement demand were
of year-on-year growth in the Czech Republic, in line with the upturn in the general economic
Latvia, Poland and Slovenia in particular. Bulgaria and construction environment, particularly over
was the only exception to this positive picture as the second half of the year, reflecting somewhat
cement production decreased by -6.2%. In the improved economic sentiment, despite tight
EU28 as a whole, cement production increased by financial conditions in many Member States and
+1.2% year-on-year, i.e. from 157.5Mt to 159.4Mt, weak domestic demand. Cement consumption

3
Please note that the cement production figure for Germany in 2014 is an estimate

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ACTIVITY REPORT 2014

Cement production in CEMBUREAU and EU28 countries


Million tonnes

350
CEMBUREAU
EU28

300

250

200

150

100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

dropped compared to 2013 in some CEMBUREAU Belgium


Member countries but recorded positive year-on-
year performances in most national markets. As Overview: Further to a decrease of -5.8% in 2013
a result, across the whole of the CEMBUREAU (compared to 2012), domestic cement consumption
region cement consumption rose by +0.7% experienced a growth of +1.4% in 2014, reaching
compared to 2013. However, as in 2013, it should 6.1Mt, revealing a positive yearly performance.
be pointed out that this overall figure conceals a Indeed, the most recent 10-year average for
considerable disparity between countries with cement consumption is 6.0Mt. This positive trend
moderate decreases in some national markets is certainly due to favourable weather conditions,
compared to considerable falls in others, although particularly from January to March 2014, which
fewer EU countries experienced a recession in is traditionally a period of subdued construction
cement consumption. activity. In addition, cement imports decreased
by 12.8% in 2014 compared to 2013. In 2014, the
construction sector ended the year with a moderate
upturn thanks to the aforementioned mild weather
Country by country analysis conditions. The residential subsector experienced
a drop in the number of building permits and a shift
from houses to apartments, as well as an increase
Austria in the number of renovation works, which had a
negative impact on new construction activity. At
Overview: In 2014, Vienna faced a huge increase the same time, non residential construction also
in immigration with the volume of construction experienced a decrease, as did civil engineering.
sites related to housing attaining a record high. The latter subsector continued to be negatively
In the other construction subsectors, big projects affected by subdued government investment, both
(i.e. infrastructure) depended on the conditions of at federal and local level.
public finance.
Future trends: 2015 is expected to be particularly
Future trends: No major improvements are uncertain for all construction subsectors. Indeed,
expected in terms of cement production and the order books have yet to be filled and some job
consumption volumes in Austria for 2015. Given losses are expected in the sector. According to the
that the current high level of housing constructions latest Euroconstruct forecasts, the construction
in the Vienna region is expected to continue, the sector in Belgium should experience zero growth
cement sector is likely to remain stable over the in 2015, which in turn is likely to translate into a
course of the year, although the latest indicators decrease of at least -3% in cement consumption.
have signalled a decline in cement deliveries
during the first few months of 2015.

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ACTIVITY REPORT 2014

Bulgaria government to investment in public infrastructure


(including highways, dams, water supply and
Overview: In 2014, the downward trend in cement sewage infrastructure systems). Factors which
consumption observed throughout the last five are expected to have an impact on the residential
years came to a halt, resulting in a slight upswing building market (which will therefore have an
(+5% increase compared to the -1% drop recorded influence on mid-term cement consumption)
in 2013) mainly due to vibrant activity witnessed are: positive dynamics in the residential building
at the beginning of the year, although this positive market, increased demand for newly constructed
trend cooled down as a result of the political crisis buildings after a long period of virtually no
and bank turmoil during the summer and autumn. residential construction, affordable loans making
The private construction sector started to regain investments more appealing, a considerable
ground due to very low interest rates for loans increase in savings and a fall in confidence in
compared to 2013, as well as the perception that the banking system (leading to a hunt for safer
the economic crisis is nearly coming to an end. A alternatives to bank deposits), an end to the price
substantial increase in consumer confidence was reductions linked to newly built apartments and
registered by the national statistics, as a result signs of a slight increase in construction prices,
of which the total area of residential buildings an increase in the number of permits for the
under construction and completed during the development of new residential areas issued by
year increased by +9% compared to 2013. The local administrations in the last quarter of 2014
residential sector in large cities recovered by (according to national statistics, the total figure is
about +3% in terms of prices and resulted in a 25% +53% higher compared to 2013), and the start of a
shortening of the time needed for the completion large scale national program for the renovation of
of deals. During the year, the volume of real estate multi-dwelling buildings. Concerning demand for
transactions for business purposes more or less new offices in Bulgaria, 2014 marked a new peak

doubled and office rents in large cities increased in its development since the start of the global
by over +8%, which showed a stable trend economic crisis. A further increase is expected
towards an increase in demand and construction in 2015, implying a corresponding increase
activity in the sector. Positive developments were in new construction and, therefore, in cement
recorded for public infrastructure projects (mainly consumption.
highways and road construction), triggered by the
relatively high rates of absorption of EU structural
funds as they approach the end of the European Croatia
Commissions 2007-2013 Regional Development
Operational Programme disbursement period. Overview: In 2014, cement consumption slightly
increased by +0.8% compared to 2013.
Future trends: There are certain grounds for
positive expectations in terms of 2015 cement Future trends: The overall economic situation did
consumption. However, given the impact of the not improve during 2014 resulting in another year
negative trends which have been recorded over of recession (-0.5%). However, a positive GDP
the last 4-5 months, a more moderate growth is growth rate is expected in 2015. The construction
forecast. The market is expected to be influenced sector is expected to record the same performance
by two main factors: an increase in construction as in 2014.
in the private building sector and the greater
priority which is being afforded by the new

15
ACTIVITY REPORT 2014

Czech Republic Denmark

Overview: In 2014, cement production in the Overview: In 2014, construction and building
Czech Republic reached 3,691Mt (+10%) year- activity was slightly better than in 2013. This was
on-year, and cement consumption 3,527Mt (+5%). to some extent positively affected by continued
In 2014, construction output increased by +2.3% publicly funded growth initiatives, especially
year-on-year in real terms. Building construction in relation to infrastructure, hospitals and
volumes remained around the level of 2013, year- universities. A moderately positive trend was seen
on-year, and civil engineering construction volumes for residential housing activity and the commercial
increased by +7.5% (contribution of +2.3%), year- building sector, rising from a historic low point.
on-year. Compared to 2008, which was a very
positive year for construction, 2014 construction Future trends: 2015 volumes are expected to
output dropped by -22.1%. In 2014, the number improve slightly compared to 2014. Public-sector
of orders received by construction companies with growth activities, the continued effects of other
50+ employees increased by +9.7%, year-on-year. political initiatives to boost the sector, low oil prices
These companies received and concluded 45,714 and Danish kroner exchange rates will have a
orders in the Czech Republic. The total value of positive effect on volumes. The residential building
the orders grew by +23.3%. Building construction segment is expected to continue the mild positive
orders grew by +2%. For civil engineering, orders trend in 2015. The commercial building segment is
grew by +40.6%. In 2014, the average value of expected to remain at the historically low levels of
a newly concluded building order was +12.4% recent years.
higher, year-on-year.

Future trends: For 2015, cement consumption is


expected to rise by +5%.

CEMBUREAU Trade 1977-2014


Million tonnes (cement and clinker)

Exports
50
Imports

40

30

20

10

0
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Note: Exports and imports including intra-trade flows between CEMBUREAU countries

16
ACTIVITY REPORT 2014

Estonia budgets, the impact of the elections held in March


which meant that public spending came to an end
4
Overview: In 2014, the Estonian construction immediately after these elections , and the fact
market improved slightly during the year. Cement that the former eco-tax, a Heavy Vehicle Transit
consumption increased by +3% in 2014 compared tax applied to trucks and lorries was discontinued,
to the previous year. The main driver was leading to a loss in public finance revenues). The
growth in the residential as well as infrastructure non-residential sector (which accounts for 15-20%
construction sectors. of the market) also recorded negative growth in
2014.
Future trends: A moderate increase is expected
in the near future, although the market could Future trends: At the moment, prospects are
potentially remain static. There are good prospects low for France in 2015 (-3.5% in terms of cement
for growth in the residential sector, supported by consumption, with 17.5Mt of cement consumed).
low interest rates and growing real estate prices. The housing market remains very low and may
At the same time, certain insecurity remains due to even turn out to be slightly negative. Industry is
the overall economic outlook. regaining confidence in exports and, as such, the
sector is not too concerned. Public budgets remain
very constrained. Civil engineering should be as
Finland low as -7%. The non residential sector should
continue to decrease.
Overview: In general, 2014 has been much like
2013. It has been a slow year for the construction
industry. All building start-ups are down by -3%, of
which residential start-ups are down by -14%.

Future trends: Forecasting has become Germany


increasingly challenging. Finland has recently
revised its official construction statistics from 1995 Overview: German cement consumption in 2014
onwards. 2015 is expected to be much like 2014, increased by +2.2%. This development was
with potentially a slight increase overall. Notable mainly driven by rising demand for residential
projects are the new wind farms which are being buildings, particularly in major and university cities.
built in northern Finland. According to a recent estimation, around 244,000
houses were completed in 2014, approximately
+14% more than in 2013. During the past few
France years, the share of residential construction in
cement demand has increased significantly.
Overview: Although the first quarter of the year In 2014, building completions in the sector of
was positive, a fall was recorded from March commercial construction are expected to remain
onwards. A -1Mt decrease in consumption has at the level of the previous year. The contribution
been recorded. Since 2007, consumption has of civil engineering to 2014 cement consumption is
fallen by nearly -30%. Housing (which accounts likewise expected to remain unchanged.
for 1/3 of cement consumption) is still very low
and 2014 was marked by a harsh fall (-11% in new Future trends: Within the context of a positive
housing construction). Roads and civil engineering economic situation, 2015 German cement
(accounting for 35% of the market) were affected consumption is expected to remain at the
by strong budget cuts (including cuts to local level of the previous year. Positive impacts are

4
According to most economic literature, public spending tends to increase substantially during so-called "electoral cycles" that is the
period of one or two years preceding political elections. This is particularly relevant for France where public expenditure decisions are
mostly made at the local level (i.e. Departments)

17
ACTIVITY REPORT 2014

forecast from the residential construction sector construction of buildings grew by +4.2% owing
due to a sustained high demand, especially in to the construction of industrial, medical and
agglomerated areas. Further beneficial impacts educational buildings. Residential construction
are expected from civil engineering. During has also risen. Approximately +15% more new
previous years, a comprehensive backlog in homes were built in 2014 compared to the previous
German transport infrastructure was accumulated year. Output from the civil engineering sector
and is now expected to be handled by the public rose by +24.8% due to works in the development
sector. In contrast, the recent development of of transport infrastructure. The volume of new
building permits in the commercial construction contracts was -17.3% lower in 2014 compared to
sector remains below expectations. the previous year.

Future trends: In 2015 the high growth rate of


Greece construction activity is highly likely to be moderate.
According to experts, a slight growth in cement
Overview: In 2014 domestic consumption consumption is expected for 2015.
increased by a small percentage, mainly due to
the restarting of public works. Building construction
was still down by approximately -9%, while civil Ireland
engineering works were up by almost +50%, based
on provisional data from the Statistics Authority. Overview: 2014 showed a return to moderate
growth during the year. Irish construction
Future trends: Providing a forecast for 2015 recovered somewhat in 2014 with growth primarily
is hard given that it will be closely linked to the in new housing, albeit from a low base.
overall economic situation.
Future trends: Construction levels are expected
to continue to rise in 2015, with the level of
Hungary growth in the residential sector continuing
although it still remains far off the heights of the
Overview: Cement consumption increased year- last decade. Recent impacts due to mortgage
on-year in 2014 by +6.9%. Hungarian construction lending restrictions introduced in early 2015 and
activity (after a recession lasting several years and amendments to the Planning and Development
a nearly +10% expansion in the previous year) Acts will have an impact on construction levels.
was +14.2% higher in 2014 with an increase in the
output of the two main construction groups. The

Construction in Europe* - Breakdown by type in 2014 (%)


Construction value (2013 prices): 1,305 Billion

New civil New


engineering, residential,
13.6 17.4

Civil
engineering
R&M, 8.6

Residential-
Non-residential R&M, 27.8
R&M, 15.9

New non-
residential,
* Euroconstruct19 Countries 16.7
Source: Euroconstruct

18
ACTIVITY REPORT 2014

Italy Future trends: Cement consumption is expected


to grow by an estimated +7% over the next few
Overview: In 2014, Italian cement consumption years.
showed a significant decrease compared to 2013
(-8%). The analysis by type of construction activity
shows an overall decrease hitting all sectors. Netherlands

Future trends: Italian cement consumption Overview: Despite the slight growth in construction
forecast for 2015 assumes a decrease of between sector output (CSO), cement consumption in the
-2-0%. Netherlands decreased by around -2% in 2014.
This slight growth in construction sector output
related to commercial buildings for transport and
Latvia logistical services in particular. The lowest volume
of completed dwellings ever was recorded.
Overview: Cement consumption remained in line Non-residential buildings for offices and healthcare
with construction growth projections of +7.6% year- have decreased the value of CSO.
on-year. The construction industry breakdown by
sectors during first 3 quarters of 2014 is as follows: Future trends: Due to increased volume of
housing 14%, administrative buildings 22%, retail building permits for housing, the CSO for housing
areas 3%, production areas 7%, roads & bridges will grow in double-digit figures. The CSO in non-
23%, ports & dams 3%, communications & utilities residential and civil engineering will grow by some
11% and others 17%. percentage points. Cement consumption in the
Netherlands is expected to grow between +2-4%.
Future trends: The construction industry is
expected to contract by -0.5% in 2015 (according
to the Ministry of Finance). Norway

Overview: A decrease in residential construction


Lithuania was recorded as a consequence of tightened
lending criteria/higher equity requirements in
Overview: 2014 domestic demand for cement the banking sector. Stable activity was recorded
consumption has grown by +17% compared to within non-residential construction. A still high and
2013. This increase in cement consumption is slightly increasing activity related to infrastructure
due to investments in the civil sector, including projects was registered, although a -10% decrease
huge infrastructure and civil engineering projects. in residential construction has been recorded.
In 2014, Lithuanian construction companies
undertook works to the tune of 2.5 billion, which is Future trends: Total cement consumption is
+15.6% compared to 2013. Building construction estimated to increase by +1% in 2015, mainly
volumes were +19.3% higher than in 2013, while related to infrastructure projects.
civil engineering has grown by +12.3% compared
to 2013. Civil engineering, industry and wholesale
had the greatest impact on GDP growth in 2014. Poland
The growth rate of construction value added was
the greatest of all economic sectors. Overview: 2014 cement consumption increased
by +6.6% compared to 2013, demonstrating
Future trends: The growth in the volume of good prosperity for the cement market in Poland.
cement sales in the 2015 domestic market is Forecast sales should amount to 16Mt of cement.
related to huge growth in infrastructure and civil The main reason behind this increase is higher
engineering projects, which will probably increase economic activity in railways and the road
by +5-6%. construction sector.

Future trends: Most economic indicators are


Luxembourg supportive of economic growth. 2015 GDP growth
is expected to achieve +3.5%, so it will be higher
Overview: Cement consumption increased by than 2014 which amounted to +3.3%. A decline
+1.6% in 2014. Construction output in Luxembourg in unemployment and an increase in domestic
performed better compared to the previous year. demand and value added in the construction
Both the residential and non-residential sector sector are also foreseen.
recorded positive performances. Cuts in public
spending, however, continued to impact civil
engineering.

19
ACTIVITY REPORT 2014

Portugal by -6.7%. Regarding structural elements the


following decreases were recorded: for capital
Overview: Portugals real GDP rose +0.9% repairs -17.9%, for maintenance and current
in 2014, driven by an acceleration of private repairs -9% and for new construction works -3.2%.
consumption and investment, while imports In terms of construction subsectors, the volume
increased more strongly than exports. The latest of construction works decreased by -21.8% for
economic and confidence indicators suggest engineering construction. Residential and non-
that the recovery in domestic demand should residential buildings increased by +32.6% and
continue, with the help of lower commodity prices +16.6%.
whilst the weak external environment continues
to exert pressure on export growth. Construction Future trends: It is estimated that in 2015 the
activity continued to decline in 2014 (-4.5%). The cement market, in particular, and construction in
construction subsectors performed as follows: civil general will grow by +3-5% compared to 2014
engineering fell by -1%, residential by -10% and provided that in 2015 the General Master Plan
non residential by -5.7%, respectively. Transportation is approved by the European
Commission. Thus, Romania is entering a new
Future trends: Projections for the Portuguese phase of making investments in infrastructure,
economy in 2015-2016 reflect an ongoing giving priority to those projects that meet the
process of gradual adjustment of macroeconomic criteria of economic performance, connectivity and
imbalances, amid moderate growth of activity investment objectives pursued by the European
and of the price level, also characterised by the Union in Romania.
maintenance of the ability to reduce external
indebtedness. This should translate into an annual
average expansion of real GDP by +1.5% and

+1.6% in 2015 and 2016, respectively, sustained Slovenia


by the maintenance of export growth and the
acceleration in investment, together with some Overview: The first signs of a slight recovery in
deceleration in private consumption. Construction construction activity were shown in 2014. Due
activity is expected to increase by approximately to the completion of projects co-funded through
+1.5% in 2015. Both the civil engineering sector EU Structural Funds (municipal infrastructure
(+2%) and different buildings segments (+1.1%) projects in particular), most of the construction
have positive prospects. Residential and non works were recorded in the segment of civil
residential buildings are expected to increase engineering, especially at the end of 2013 and
by +1.3% and +0.9% in 2015, respectively. by mid-2014. Compared to 2013, construction
Cement consumption is expected to increase by activity registered the following changes in 2014:
approximately +4% in 2015. +19.4% in the whole construction sector, -21.1%
in the residential building sector, +9.9% in the
non-residential building sector and +26.4% in the
Romania civil engineering sector.

Overview: 2014 cement consumption increased Future trends: According to experts in


by +5.6% compared to 2013 due to private construction activity, the future prospects are not
investment, residential and non-residential good. No major construction projects are planned.
projects and favourable weather conditions. Statistics regarding building permits show that
In 2014, compared with 2013, the volume of there are fewer permits issued each year.
construction works (unadjusted series) fell

20
ACTIVITY REPORT 2014

Spain residential sector improved, particularly for the new


multifamily houses sub segment, and the sector
Overview: During 2014, the evolution of cement gained further momentum in 2014. However,
consumption in Spain has revealed a change in residential construction activity grew at much
tendency compared to the continued decline that lower rate in 2014 and the effect of its recovery on
began in 2008. In fact, during the year, cement the total construction market was limited.
consumption initiated a phase of growth that
was highlighted particularly during the second Future trends: Compared to 2014, no major
semester. In this sense, the second semester changes are expected in terms 2015 domestic
has reflected a growth in cement consumption of cement consumption, with forecasts suggesting a
+4.3% in comparison with the first semester that consumption of 2.2Mt for the year.
reflects a decline of -3.7%. For the whole year,
consumption shows a moderate growth of +0.4%.
In any case, the volume of cement consumed in Switzerland
Spain in 2014 has been situated at 10.78Mt, which
is a remarkably low figure if it is compared with the Overview: 2014 cement consumption remained
figures that have traditionally been given in Spain. at a similar level as in 2013. The main driver
Between 1970 and 2014 the annual average continues to be the housing sector. Infrastructure
consumption was around 25Mt. In recent years, construction remained at a more or less unchanged
low levels of cement consumption led the Spanish level.
cement industry to seek foreign markets as a
way to mitigate the strong decline in its activity. Future trends: A slight decrease of some -3-5% is
As consequence, Spanish exports of clinker and forecast for 2015 cement consumption. The office
cement have been progressively growing until and housing subsectors will experience a decrease
attaining 9.59Mt in 2014, an increase of +32% in the next few years. New infrastructure projects -
compared to the previous year. This volume of railway, road and energy - are being planned, but
exports makes Spain the lead country in terms of not yet approved by the political authorities.
exports within and outside the European Union.
In Spain, in recent years, the strong decline in
cement consumption has been caused by a drop Turkey
in construction activity, both residential and non-
residential as well as civil engineering. However, Overview: The Turkish economy grew by +2.9%
a re-launch of the civil engineering sector was in 2014. During this period, the construction sector
initiated during 2014 and this has led to an increase also recorded a growth of +2.2%, similar to the
in cement consumption during the second half of national economy. The cement industry plays an
2014. Consumption in building construction has important role in the Turkish economy with its
almost stabilised compared with previous periods nearly US$4 Bn in turnover, US$640 Mn in exports,
and, since the initiation of works in this construction and providing direct and indirect employment
segment are beginning to show certain signs of to 15,000 people. The Turkish cement industry
recovery, cement consumption is also expected to achieved 64.2Mt in domestic sales in 2014. TCMA
show signs of recovery. member plants accounted for 63.2Mt of these. In
2013, TCMA members accounted for 62.2Mt out
Future trends: In 2015, cement consumption of a total 63.4Mt. Domestic sales grew by +1.3%
forecasts show a consolidation of the recovery that in Turkey, and by +1.5% for TCMA members.
started at the end of 2014, with current forecasts Progress in the cement sector is similar to that of
indicating that cement consumption could grow the construction sector. At the end of 2014, 8.1Mt
by around +5-7% in 2015. This growth will be of cement and 2.9Mt of clinker were exported,
the result of the consolidation in civil engineering translating into a decrease in cement exports
works and in the recovery of the construction of -21.6% and an increase of +37% in terms of
sector. clinker exports (compared to the previous year).
The decline in cement exports is primarily due to
the current situation in foreign markets. Due to the
Sweden unsteady atmosphere in neighbouring countries,
Turkish export activities have been facing tough
Overview: 2014 cement consumption decreased times. Political problems in Syria and Libya,
by -1.6% compared to the previous year. In and the slowdown in Iraqi and Russian markets
Sweden, the value of the total construction market are signs of unfavourable times ahead. With the
during 2014 increased compared to 2013. The installation of new capacity, at the end of 2014 the
residential sector recorded poor performance clinker production capacity attained 69.6Mt.
in 2012 but in 2013 market conditions for the

21
ACTIVITY REPORT 2014

Future trends: Growth in the cement sector Overall, in 2014 there was annual growth of around
is expected to be around +5% in 2015 due to +6% compared to 2013. However, the volume of
investments in housing within the scope of urban construction output fell by -2.8% in the last quarter
renewal, special projects such as a third airport, of 2014 compared to the previous 3 months.
a third bridge (Bay Bridge), infrastructure projects The decline was driven by repair & maintenance
such as a high-speed train, metro, highway, energy and new housing work. However, activity in the
investments such as HES/RES which aims to sector remains buoyant, with the latest PMIs for
decrease Turkeys energy dependence combined construction activity pointing to sustained growth
with the arrival of general elections. in the short to medium term.

Future trends: Average independent forecasts


United Kingdom have revised up their growth projections for 2015
to +2.7% (from +2.6%), softening to +2.3% in
Overview: The strong economic performance seen 2016.
in the first half of 2014 gave way to a slowdown in
the second half. Despite this slowdown in activity
in the second half of 2014, the momentum is set
to continue, with the UK economy showing signs
of revival and resilience since the start of 2015.

22
ACTIVITY REPORT 2014

Evolution of cement consumption


in CEMBUREAU countries
Variation 2014/2013

MEMBERS

ASSOCIATE MEMBERS

Sweden

Finland

Norway

Estonia

Latvia
Ireland Denmark
Lithuania
United
Kingdom Netherlands
Poland
Belgium Germany

Luxembourg Czech Rep.

Switzerland Austria
France Hungary
Slovenia Romania
Croatia
Portugal
Serbia
Spain Italy n/a Bulgaria

Turkey
Greece

: Increase : Decrease
n/a: Not available

23
ACTIVITY REPORT 2014

emissions reporting
gnr & beyond
Since 2007, CEMBUREAU has contributed to
the World Business Council for Sustainable
Development - Cement Sustainability Initiatives
(WBCDS-CSI) Getting the Numbers Right
(GNR) project, which aims at monitoring and
addressing CO2 emission trends from the cement
industry at global level. CEMBUREAU has actively
participated in the GNR data collection and
Project Management Committee ever since. The
GNR project is a CO2 and energy performance
information system, based on emission data
from individual cement installations. The system
gathers information on each factor or lever that
impacts CO2 emissions and energy efficiency,
300
Cement Production,
Production,EU28,
EU28, including the average thermal efficiency per tonne
mtonnes of clinker, and the substitution of conventional fuels
250 CO2 emissions,
Net CO2 emissions,EU28,
EU28, with alternative fuels and biomass. The information
mtonnes
contained within the system represents around
200 23% of global cement production (some 55%
without China). Separate reports for the EU28
and the CEMBUREAU region are also available,
150
including information from 304 installations,
representing approximately 95% of total EU
100
cement production.

50 The main results of the GNR are presented here


and show a significant decoupling between cement
0 production and absolute CO2 emissions over time.
1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 According to GNR data, whilst cement production
in the EU28 decreased by 26.9% from 1990 until
2012, the absolute net CO2 emissions decreased
by 38.6% from 1990 until 2012. GNR reports are
available online: http://www.wbcsdcement.org/
GNR-2012/index.html. Releases from cement kilns
originate from the physical and chemical reactions
of the raw materials and from the combustion of
fuels. In addition to CO2 emissions, exhaust gases

24
ACTIVITY REPORT 2014

also contain dust, sulphur dioxide (SO2) and Some of key findings from the latest emissions
nitrogen oxides (NOx), amongst others. In 2014, report (2012 data) can be described as follows:
CEMBUREAU continued to collect emissions data
for other key elements emitted during the clinker NOx emissions continue to decrease.
burning process including dust, NOx and SO2. The
latest report includes emission values collected Compared to 2011, 8 additional plants
for 300 kilns from the CEMBUREAU member installed primary abatement measures
countries for 2012, compared to 275 the year across the CEMBUREAU region in 2012.
before.
Dust emissions are increasingly within the
Best Available Technique (BAT) Associated
Emission Level (AEL) ranges.

DUSTEmissions
DUST Emissions- -Continuous
Continuous- -2012
2012
100
90
80
70
60
mg/Nm

50
40
30
20
10
0
0 50 100 150 200 250

NOx Emissions - Continuous


NOx Emissions Continuous -- 2012
2012
2000
1800
1600
1400
1200
mg/Nm

1000
800
600
400
200
0
0 50 100 150 200 250

SO2 Emissions - Continuous - 2012

25
ACTIVITY REPORT 2014

CEMBUREAU MAIN
ISSUES
In June 2014, a new European Parliament was
elected with a significant presence of Euro-sceptic
parties in the hemicycle. While the traditional
political groups still dominate the discussions, they
do need to take into account a constant challenge
from new players that occupy all parts of the
political spectrum and voice strong concerns by
citizens who suffer from austerity measures taken
by national governments. It is in this challenging
environment that a new European Commission
took office in November 2014. Commission
President Juncker pledged that his number one
priority will be getting Europe grow again and
getting people back to work.

Throughout the year, CEMBUREAU has engaged


with policymakers on the three strategic directions
that were set out for the association: (i) continue
to protect and defend the industry; (ii) promote
concrete as a material of choice in sustainable
construction and (iii) create a compelling case
on the need for a competitive, local cement and
concrete industry.

Climate Change & Energy

The allocation of free allowances has been a


successful policy to prevent carbon leakage.
As long as there are no comparable efforts
undertaken in other major economies, similar
policies as in the current system (including an
improved system of free allocation of allowances
with a better focus) will also be needed after 2020
in order to ensure the competitiveness of Europes
energy-intensive industries. (Climate Action
and Energy Commissioner Miguel Caete in his
hearing before the European Parliament).

26
ACTIVITY REPORT 2014

CEMBUREAU provided substantial facts and outliers in setting benchmarks and (iv) indirect
figures to demonstrate that the sector continues compensation to supplement direct emission
to fulfil the carbon leakage criteria, for both allowances.
cement and clinker. As a result, the European
Commission confirmed that the cement sector From a standardisation perspective, work
remained subject to a significant risk of carbon also continued under CEN TC 264 WG 33
leakage for the period 2014-2019; (Greenhouse gas [GHG] emissions in energy-
intensive industries). In 2014, the results from
1
The Commissions carbon leakage decision the tests undertaken at two cement plants in
provided the stability and legal certainty for order to determine the uncertainties of the
the period up to 2020 and thus allowed our methods were reviewed, and a draft standard
sector to pro-actively reflect and engage on an was prepared for the cement industry.
appropriate climate change legal framework
for the post-2020 period;
Energy costs in the cement industry represent
In response to the Commission publication of around 30 % of the total operating costs. In its
2
the post-2020 Climate and Energy package, Climate and Energy package of January 2014 ,
in January 2014, CEMBUREAU elaborated the European Commission acknowledged that
views on an improved EU-ETS but also there has been a decisive shift in the centre
assessed alternative mechanisms such as the of gravity of global energy demand towards
putting in place of a cross-border mechanism emerging economies, notably China and India. At
or a consumption charge; the same time, households and industrial users

Whatever the system chosen, CEMBUREAU are increasingly concerned by rising energy prices
called upon policymakers to take into account and price differentials with many of the Unions
the long-term planning and investment trading partners most notably the USA.
cycles of the cement industry which require
a predictable legal framework and a stable CEMBUREAU participated in the consultation
long-term carbon price to foster investments in process on the revised energy and environment
3
low carbon technologies; Guidelines . Throughout the consultation, the
Association emphasised the impact of high
If the EU-ETS were to continue as a market- energy process on the global competitiveness
based system, CEMBUREAU calls for (i) a of the industry;
performance based free allocation for direct
3
emissions whereby a multiplication of the Under the finally adopted new Guidelines , the
benchmark by a historic activity level (HAL) cement industry is now eligible for national aid
which is more closely aligned to recent for reduction or exemption from environmental
production could avoid surplus allocation; (ii) taxes and is mentioned in Annex III as eligible
an elimination of the cross-sectoral correction for aid in the form of reduction in funding
factor which avoids full free allocation for support for energy from renewables;
even the best performer; (iii) the elimination of

1
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and
of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period
2015 to 2019
2
A policy framework for climate and energy in the period from 2020 to 2030
3
Guidelines on State aid for environmental protection and energy 2014-2020

27
ACTIVITY REPORT 2014

Unfortunately, for carbon-tax related aid


3
Resources & Processes
measures, the Guidelines include a cross-
reference to the indirect compensation According to figures from the European
4
Guidelines under the EU-ETS for which Commission, each person in todays EU consumes
the cement sector does not qualify. This 15 tonnes of materials annually while generating
creates a substantial market distortion and 5 tonnes of waste, with half going to landfill.
CEMBUREAU will continue to engage with the
European Commission to find an appropriate Today, 32% of cement kiln energy in the
solution to this issue. European Union is provided by alternative
fuels, 8.7% of these fuels originate from
Significant emissions cuts are needed in the biomass (such as animal meal, waste wood,
EUs energy and carbon-intensive industries. As sewage sludge and sawdust) and 25.6%
theoretical limits of efficiency are being reached from other waste (e.g. waste tyres, waste oil,
and process-related emissions are unavoidable in solvents). By 2050, 60% of kiln energy could
some sectors, Carbon Capture & Storage (CCS) be provided by alternative fuels, leading to a
may be the only option available to reduce direct 27% reduction in fuel CO2 emissions;
emissions from industrial processes on the scale
needed in the longer term. (DG CLIMA website, CEMBUREAU clarified the notion of co-
European Commission). processing by emphasising that it is a
combined operation of energy recovery and
CEMBUREAU closely follows developments material recycling;
regarding carbon capture in the cement
industry. Research in this field is primarily A joint position paper on this combined operation
being undertaken by the European Cement has been published with the European Tyre &
Research Academy (ECRA). So far, the first Rubber Manufacturers Association (ETRMA),
three phases of the research are complete, emphasising that around 1.1 million tonnes of
including the literature survey, study on the used tyres are sent to cement kilns annually
technical and financial aspects of Carbon where the high calorific value of the rubber is
Capture (CC) and laboratory scale research. used to substitute primary fuels and the mineral
The project has now entered Phase IV, namely fraction of the tyre (mainly iron and silica) as a
preparing for a pilot plant. In addition, ECRA substitute of the raw materials.
held the first Chair event at the University of
Mons (Belgium) in November 2014, which Together with its partners within the Non-
allowed them to present the work to date. Energy Extractive Industries Panel (NEEIP),
During this important event, the European CEMBUREAU presented to the European
Commission was also invited to set the scene Commission a lead resource efficiency
surrounding CCS and Carbon Capture & indicator based on better supply, use and
Utilization (CCU) from the perspective of its re-use of resources as an alternative to a
research and funding strategy. resource efficiency target proposed by the
Commission which supported weight-based
Raw Material Consumption.

The EU is setting the scene for a climate


change policy framework that will need
to drive competitiveness of European
industry while providing the necessary
incentives to further reduce emissions.
With our proven track record on emission
reduction and views on future efforts as
expressed in our Roadmap, we provide an
essential contribution to this debate.

Vincent Mages &


Francisco Javier Merle Pons
Working Group Climate Change & Energy
co-chairs

3
Guidelines on State aid for environmental protection and energy 2014-2020
4
Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post 2012

28
ACTIVITY REPORT 2014

The infographic shown below has been


developed to demonstrate how such combined
energy recovery and material recycling
operation is at the heart of the circular
economy;

s
In on
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demolition waste
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ES

CEMBUREAU continued to monitor In response to the new Clean Air Policy package
developments regarding the revision of both the for Europe, adopted by the Commission in
Waste Treatment Best Available Techniques December 2013, CEMBUREAU called for a
(BAT) Reference Document (BREF) and the fair burden-sharing between sectors, including
Waste Incineration BREF. Regarding the road transport and agriculture, when setting
Waste Treatment BREF, the work was primarily new air quality objectives for the period up
undertaken by the European Association for to 2030. The Association also reminded
co-processing (Eucopro). In 2014, a data policymakers to ensure consistency with
collection was launched by the European existing industrial emissions legislation and
Integrated Pollution Prevention and Control to avoid stricter national emission ceilings
Bureau (EIPPCB) to gather information from for a series of pollutants, including SO2 and
waste treatment plants regarding techniques NOX, that would go beyond what is technically
and key environmental issues. For the Waste feasible.
Incineration BREF, CEMBUREAU submitted
comments to the proposals raised by the
EIPPCB for the revised BREF.

29
ACTIVITY REPORT 2014

Mercury is present in the raw materials ecosystems. At EU level, the focus remained
and in the fuel released in the cement on trying to identify ways of achieving a no net
combustion process. CEMBUREAU has loss of biodiversity. Against this background
been strongly involved in the UNEP Global a public consultation was launched to which
Mercury Partnership Advisory Group that CEMBUREAU responded, outlining the
focuses on how to protect human health and importance of ensuring that all sectors which
the global environment from the release of have an impact on biodiversity and ecosystems,
mercury and its compounds. The Minamata such as agriculture and forestry, are covered
Convention has now obtained 128 signatories by any such initiative. CEMBUREAU also
and 12 ratifications since its adoption and strengthened its collaboration with key
UNEP confirmed that it would be allocating stakeholders, including International Union for
US$141 million over the next four years for the Conservation of Nature (IUCN) and Birdlife
implementation of the Convention, along with International. In this respect, the Association
the private sector. CEMBUREAU, on behalf was delighted to support the IUCN guide for
of the Cement Sustainability Initiative (CSI), managing biodiversity in cement & aggregates
had the opportunity of presenting to the UNEP sector launched during the summer.
Global Mercury Partnership Advisory Group
the work of the Cement Partnership to date.

CEMBUREAU continues to support its


members in the area of innovation funding
and maintains its involvement in SPIRE
(Sustainable Process Industry through
Resource and Energy Efficiency) which is

a Public Private Partnership launched as


With the Circular Economy package hitting
part of the Horizon 2020 Programme and
the headlines in mid 2014, the cement and
representing 8 different industrial sectors. In
concrete industry has worked together on
2014, CEMBUREAU worked together with
defining exactly how the sector applies
the cement companies which are members of
resource efficiency principles throughout
SPIRE, in order to undertake the preparatory
its supply chain. Although the new
work to define priority topics for the next round
European Commission has now withdrawn
of SPIRE calls for project proposals in 2015. 5
the Circular Economy package , the work
undertaken by CEMBUREAU will continue
Biodiversity remained an important topic
to prove useful for ongoing discussions
for the cement industry, particularly given
in Brussels, ahead of a reformulated and
the positive contribution of the sector to
larger circular economy proposal expected
biodiversity management and conservation
in 2015.
through rehabilitated quarries. Within the
sector itself, the CEMBUREAU members
Rob van der Meer & Markus Rentsch
agreed upon a series of indicators which would
Working Group Resources & Processes
allow the cement industry to demonstrate the
co-chairs
positive impact which it has on biodiversity and

5
Moving towards a Circular Economy (July 2014)

30
ACTIVITY REPORT 2014

Health & Safety workers to cement containing dust. In 2014,


GreenFacts was commissioned to update the
The Treaty on the Functioning of the EU allows summaries produced in 2012, allowing for
management and social partners to enter cement companies to communicate internally
into a social dialogue agreement. In 2006, 15 to their workers the result of the CHRS. The
industry sectors, jointly representing more than various components of the CHRS include
2 million employees and exceeding EUR 250 bn an updated survey of the literature on the
turnover, have entered into a European Social question, a toxicological study carried out in two
Dialogue Agreement (ESDA) on workers health phases, one involving in-vitro tests, the other
protection through the good handling and use ex-vivo tests and exposure measurements
of crystalline silica and products containing it. in the construction industry. The European
Under the agreement, social partners proceed Prospective Lung Function Monitoring Study
to risk assessments of the potential exposure to was completed in 2014 and, in a next step,
crystalline silica in the workplace and additional CEMBUREAU will decide on the appropriate
measures are taken such as dust exposure way for cement companies to communicate
monitoring, training and health surveillance the results to their workers.
through their participation in Nepsi.
Safety Data sheets: three safety data sheets
CEMBUREAU is proud to report that, thanks to currently exist for the cement industry, covering
the efforts of its members, 100% reporting of common cements, Portland cement clinker and
the identified sites has been achieved, 97.8% flue dust. The first two were updated in 2014 in
of employees potentially exposed to Respirable order to bring them in line with the requirements
Crystalline Silica (RCS) are covered by a risk imposed by European legislation according to
assessment and an improvement was seen which both substances and mixtures can only
in relation to all Key Performance Indicators
(KPI).

Based on the strong expertise in the SDA be classified, labelled and packaged under the
with a preventive approach to RCS exposure, Classification, Labelling and Packaging8 (CLP)
CEMBUREAU has closely followed the of substances and mixtures Regulation as of
European Commissions initiative to issue 1 June 2015.
legislation on RCS and bring it under the
Carcinogens and Mutagens Directive6 (CMD),
in spite of the fact that it is not classified as a For several years now, the cement
carcinogen. If legislation were to be adopted industry has been proactive in preventing
on RCS, the Chemical Agents at Work worker exposure to Respirable Crystalline
Directive7 (CAD) might be a more appropriate Silica (RCS). This work is now being
tool, be it that any attempt to legislate ignores used as part of the discussions around
the good functioning of the SDA. At this point the potential inclusion of RCS under the
in time, all policy options seem to be open, Carcinogens and Mutagens Directive.
including a merge of both Directives and no Several options remain on the table and
new legislation. CEMBUREAU will continue CEMBUREAU will continue to play an
monitoring these developments. active part in the debate, emphasising that
a voluntary approach can lead to tangible
A Comprehensive Health Risk Study (CHRS) and positive results for social partners.
was launched by CEMBUREAU in 2005 with
the aim of identifying any potential health Martin Schneider & Stefano Gardi
concerns around the exposure of cement Working Group Health & Safety co-chairs

6
Directive 2004/37/EC of the European Parliament and of the Council of 29 April 2004 on the protection of workers from the risks related
to exposure to carcinogens or mutagens at work
7
Council Directive 98/24/EC of 7 April 1998 on the protection of the health and safety of workers from the risks related to chemical agents
at work
8
Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and
packaging of substances and mixtures
31
ACTIVITY REPORT 2014

Markets & Products construction and demolition waste and how a


full life-cycle approach to buildings contributes
According to the European Commissions to putting concrete at the heart of a resource-
Communication on resource efficiency in the efficient, circular economy.
building sector:
The construction sector is most capable of Standardisation: CEMBUREAU has liaison
reacting quickly to underpin the re-launch status under the European Committee for
of the economy and is not exposed to Standardisation (CEN) and is involved in
delocalisation; - CEN Technical Committee (TC) 51 (Cement
There is a lack of reliable, comparable and building limes): revision of standard
and affordable data, methods and tools on EN 197-1 Composition, specifications and
which the operators in the supply chain can conformity criteria for common cements,
analyse and benchmark the environmental with a view to including implementation
performance of different building solutions; of the Construction Products Regulation,
Construction and demolition waste makes standardising certain new types of ternary
up a third of total waste in the EU. A large cements (CEM II/C-M and CEM VI
majority of Construction and Demolition [composite cement] composed of clinker,
Waste (CDW) is recyclable but with the blastfurnace slag, limestone, silicious fly
exception of a few Member States recycling ash and natural pozzolana) and renaming
up to 90%, the average recovery for EU 27 of CEM V cements to slag-pozzolanic
is just below 50%; cements;
Concrete is the most used material in - Drafting of Product Category Rules (PCR)
buildings and its recycling reduces natural for Environmental Product Declarations
resource depletion and landfilling of (EPDs) for cement;
waste. Concrete can often be recycled at - CEN/TC 104 (Concrete and related
demolition or construction sites close to products), the work centred on the
urban areas where it will be reused thereby revision of EN 206-1 (Concrete Part 1:
reducing transport demand with savings in Specification, performance, production and
cost and related emissions. conformity);
- CEN/TC 350 Sustainability of Construction
The Concrete Initiatives achievements: Works, several issues were tackled,
including the development of a Framework
Successful launch of The Concrete Initiative Standard for the Sustainability Assessment
at two well-attended events with policymakers of Civil Engineering Works (preliminary work
in Brussels (May 2014) and MEPs in item), and discussion on the possibility of
Strasbourg (November 2014) generated a real incorporating new environmental indicators
interest and open dialogue on the essential within the CEN/TC 350 standards.
contribution of concrete to the economic,
social and environmental pillar of sustainable Responsible sourcing: as part of the European
construction; Concrete Platform (ECP), CEMBUREAU
signed a Memorandum of Understanding
In addition to events and thematic lunches with the World Business Council for
(see events section p.36), a website, video Sustainable Developments (WBCSD) Cement
and blog were developed to encourage key Sustainability Initiative (CSI), confirming
stakeholders to work with us; its involvement in the development of a
Responsible Sourcing Scheme for Concrete.
Strong messages were developed and In 2014, the task focused upon defining the
conveyed to policymakers positioning concrete necessary conditions and developing a series
as an affordable material of choice to build of criteria.
durable, energy-efficient (through thermal
mass) and safe houses and infrastructure of The Sustainable Construction glossary,
tomorrow. produced in collaboration with the Architects
Council of Europe and the European Economic
A thematic lunch on recycling of concrete and Social Committee, has been revised by
was held where policymakers had a unique the ECP. The translations are currently being
opportunity to learn first-hand from industry updated in order to take into consideration
specialists how an appropriate policy improvements to the terms and definitions. All
framework could foster the collection of versions are due to be completed in 2015.

32
ACTIVITY REPORT 2014

In terms of fire safety, technical issues


The launch of The Concrete Initiative
relating specifically to concrete continued to
in May 2014 opened the door to the
be managed under the ECP. From a more
development of a real dialogue with the
advocacy oriented perspective, the work
European Institutions on sustainable
was led by Fire Safe Europe (FSEU), which
concrete construction as a driver for
gathers together various construction product
growth in Europe. By working together
producers. Taking advantage of the 2014
with the concrete sector, we are now
elections in the European Parliament, FSEU
in a position to outline with one voice
invited those standing for (re)election to pledge
the significant role concrete can play
for a Fire Safe Europe meaning that, in the
in the development of local economies
event they were elected, they would advocate
and sustainable housing, buildings
in favour of fire safety at EU level. Following
and infrastructure. Messages have
the elections, FSEU continued to maintain
been agreed and a valuable network
momentum by following up with elected
of stakeholders established. An open
supporters to push for an own initiative report
dialogue on policy development has
from the European Parliament on fire safety.
commenced which can be built on in the
years to come to ensure that sustainable
construction remains at the heart of
economic activity in Europe into the
future

Colm Bannon & Massimo Paris


Working Group Markets & Products co-chairs

our working group structure

A B C D
Climate Change Resources Health Markets
& Energy & Processes & Safety & Products
TASK FORCES TASK FORCES TASK FORCES TASK FORCES

Carbon Leakage BREF Revision Comprehensive Product Standards


Health Risk Study and Regulations
CEN TC 264 WG33 Biodiversity
Mirror Group REACH SDS C&L Sustainable
Waste RCS Construction
2050 Low Carbon
Economy Roadmap Resource Efficiency
& Fiscal Issues
ETS Future

The Main Issues section covers just the key areas of CEMBUREAUs work in 2014.
The Association continued to work on many other issues throughout the year.

It should also be noted that the Members and company representatives active with the
CEMBUREAU Working Groups play an invaluable role in ensuring the success of the
Association and the best possible outcome, and it is to them that we extend our thanks.

For more information on specific issues dealt with by CEMBUREAU,


please e-mail aj.johnson@cembureau.eu.

33
ACTIVITY REPORT 2014

ENERGY

The Energy Market 2014


Bear market for the energy complex.
The whole energy complex plummeted in
2014, although with petcoke only seeing a fairly
modest decline. The main reasons behind this
include the massive trend in global deflation, a
strengthening US dollar and slower growth in
China. Metallurgical coal and iron ore prices fell
by 50% in 2014, affecting demand and Freight on
Board (FOB) prices for US West Coast petcoke.
The freight market has weakened since mid 2014,
fundamentally due to an increase in the supply of
new vessels, but mainly following the weakening
Chinese economy. Technical analysis of the freight
market indicated a heavy retracement downwards
already in September. In the event that everything
else remains the same, lower freight rates tend
to have a positive impact on FOB prices for
commodities, so the sharply lower freights have
hidden the worsening global economy for non-
agriculture commodities. Petcoke prices on an
FOB basis are virtually always the inverse of
freight rates, and if freight rates had remained
unchanged since mid 2014, the FOB price for
CemProspects petcoke would probably be more or less US$5-8
below current levels.
On 27 & 28 October, the 2014 edition of the
CemProspects (Energy Markets Prospects The freight market has fallen to close to the very
Conference) organised by Cimeurope, was held in strong long-term support of 650 on the Baltic Dry
Istanbul. Delegates from 20 countries participated Index (BDI), in line with technical analysis. It is
in the conference. As in previous years the coal unlikely that this level will be broken, although the
and petcoke markets were covered, as well as record strength of the US dollar means that some
freights and alternative fuels. ship owners will be running at a profit, even at this
level. The level has been tested 5 times since the
1980ies and always held up, the main reason being
that at this level, ship owners see no option other

34
ACTIVITY REPORT 2014

than to lay up vessels, hot lay up or cold lay up, than previously predicted. Petcoke demand in
which in any case decreases the operating fleet. the Atlantic will remain unchanged at best, with
The main prediction suggests that freights will test Europe sluggish. Petcoke consumption is likely to
the 650 BDI level but not break it. Furthermore, Q1 fall by 2-3%, a function of an increase in the use
is historically a very weak quarter. of alternative fuels and lower construction activity
in general. The outlook for Turkey is mitigated for
Natural gas prices have declined from US$19 2015. The main locomotive for the petcoke trade
C&F Asia per million Btu to US$10-11 C&F. The is India. The low freight rate of down to US$26
low prices will have a negative impact on demand from US Gulf to India, from above US$43+ at the
for other energy forms, including steam coal and highs of the year, has offered the main support for
petcoke. C&F prices Asia for US LNG are close the petcoke market. Although FOB petcoke prices
to current domestic prices for natural gas, which have declined from a high of US$65 US Gulf in
reduces US export volumes and thereby presses Q2 of 2014 (for high sulphur petcoke to around
down US demand for steam coal. Although natural US$52 end of Q4), they have been much more
gas is not a real competitor against petcoke, it is resilient compared to other energy forms. Current
indirectly, due to its interaction with steam coal. petcoke prices are very high compared to all other
Lower international coal prices directly affect energy commodities, such as crude oil, LNG and
petcoke prices. steam coal. Historically, whenever crude oil and
coal have been priced at current prices, petcoke
Coal prices saw a temporary low at US$55 FOB prices FOB US Gulf have been below US$35. Mid
per 6 000 kcal/kg in beginning of January 2015, sulphur petcoke from Venezuela has fallen back to
but the steam coal market has recovered so far US$60-65, down from US$75-77 FOB at the peaks
everything indicates that the rally is a dead cat from the end of Q2. This is partly due to improved
bounce, as nothing fundamental nor technical has supply and partly due to many consumers trying to

changed. Technical analysis of the steam coal has use higher sulphur petcoke. The price discrepancy
shown, since the middle of the year 2014 that if has been maintained despite record low steam coal
and when the market were to break the important prices, with in fact around the same C&F prices
level of US$72, there was no support level before pro rata for steam coal as for petcoke. Demand
US$57-59. in the Atlantic is expected to remain more or less
the same in 2015, with Egyptian imports balanced
The petcoke market seasonally tends to bottom by European consumption which continues to
out in Q4. This is due to several reasons such as fall. The current outlook for high sulphur petcoke
the liquidation of stocks by refineries, with most indicates a 2015 decline for petcoke FOB prices in
preferring not to have any inventories for tax Q2 and Q3, but a recovery in Q4. For mid sulphur
purposes. Consumers similarly try to minimise petcoke, the price pressure is more pronounced
stocks, for capital reasons. From 2011 to 2014 with improved supplies from Venezuela, US Gulf
the market has risen by 10-15% from the end of mid sulphur petcoke losing out to Asian markets,
Q4 until the end of Q1, the only exception was in and with US West Coast petcoke becoming more
2014, when the market only peaked at the middle- competitive. With increasing Indian demand from
end of Q2. In 2014 the markets oscillated around Q4, prices are expected to remain balanced or
the pivotal level of US$60 FOB US Gulf - in a way, even increase, although this will depend on the
the down spread in Q4 is replaced by a similar up steam coal market. Given other energy markets,
spread in Q1.The market, however, seems to have high sulphur petcoke should be at US$40-45
less momentum in 2015 compared to previous FOB US Gulf and mid sulphur petcoke at US$55,
years, which can be explained by the overall meaning a downside of US$5-10 per tonne.
deflation trends, combined with lower demand from
China, pending over supplies from the two Aramco
units, and lower than expected Egyptian imports

35
ACTIVITY REPORT 2014

EVENTS

Under the auspices of the 2014 edition of Green


THE CONCRETE INITIATIVE Week, entitled Circular economy saving
resources, creating job, CEMBUREAU organized
a plant visit in order to illustrate and educate key
26 NOVEMBER 2014 stakeholders at EU level on how waste is recovered
and recycled in the cement manufacturing
process. The tour commenced with a visit to
Recyfuel, a waste treatment facility located in the
eastern part of Belgium. The primary goal was to
demonstrate how waste is treated prior to being
delivered to cement plant for use as an alternative
fuel. In the afternoon, the visit continued at a
HeidelbergCement plant located in Maastricht,
DINNER the Netherlands. Here, a detailed explanation was
provided on how the cement industry makes the
Kindly hosted by MEP Julie Girling
most of energy recovery and material recycling
(i.e. co-processing) in the cement manufacturing
process. In addition, participants had the unique
When? opportunity of visiting a restored quarry and
26 November 2014 at 18.00
Where?
biodiversity conservation project.
European Parliament, Strasbourg - Room C2.1
What to expect?
Keynote speech from MEP Julie Girling Given the focus dedicated to the sustainable
The Concrete Initiative manifesto and publication revealing
some surprising facts, figures and examples and the contribution construction project, events in 2014 related
of concrete to the three pillars of sustainability
Networking dinner
primarily to The Concrete Initiative. To kick off the
To register please contact i.perova@cembureau.eu by 14 November 2014 debate, an event was held in Brussels (27 March
2014) with key stakeholders in order to identify
their concerns relating to sustainable construction,
as well as to present some of the initial ideas under
discussion within The Concrete Initiative, and to
identify whether it was on the right track. Bringing
together representatives from the European
institutions, the wider construction industry, NGOs
and civil society, the debate focused primarily on
the challenges which will need to be tackled in the
years to come.

36
ACTIVITY REPORT 2014

Following on from this, The Concrete Initiative was Given that, at the time of the launch event, elections
officially launched at Autoworld (Brussels) on 27 were being held across the EU for the new European
May 2014. With Jacki Davies in the moderator seat, Parliament, The Concrete Initiative identified the
a debate was held amongst key representatives need to organise a dedicated networking event in
from the European Commission, the European November 2014 with the newly elected Members
Fire Fighters Unions Alliance, OECD, the Swiss of the European Parliament. Thanks to the efforts
Federal Institute of Technology and an architect. of the CEMBUREAU Members, most notably
A wide ranging series of themes were debated, the Members Plenary Group and the Senior
including shifting towards a performance-based Advisory Group, a large number of MEPs and
construction sector, which encompasses whole MEP assistants joined The Concrete Initiative for
life performance, and the importance of a local dinner in the Strasbourg building of the European
industry to Europes economy. The Concrete Parliament. Although the primary focus of this
Initiative also took this opportunity of unveiling its event was to get to know and network with the new
film which highlights the value of concrete, and the MEPs, The Concrete Initiative had the opportunity
sector as a whole. of providing an overview of the challenges facing
modern society to which concrete can provide
During the second half of the year, The Concrete a positive contribution. Some of the challenges
Initiative adopted a more focused approach, and in highlighted include the fact that European citizens
October 2014 it held its first thematic lunch covering need safe, affordable and resilient housing and
the issue of recycling concrete construction and infrastructure. In addition, growth and jobs needs
demolition waste. This lunch came at a perfect to be stimulated in order to navigate Europe out
time, given the fact that recycling is high up on the of the current crisis. Finally, energy efficiency and
political agenda further to the publication in July low carbon solutions are key if the sector is to
2014 of the European Communication on resource reduce its impact on the environment.

1
efficiency opportunities in the building sector . The Several events are already in the pipeline for 2015,
role of a thematic lunch is to launch a real debate both as CEMBUREAU and The Concrete Initiative,
between technical experts and policymakers without forgetting the bi-annual European Minerals
working directly on relevant legislation. By Day. For more information on what the Concrete
ensuring that the right people were around the Initiative up to, please visit
table, the debate enabled an open discussion on
what works, what does not and what could be the www.cembureau.eu
potential solutions. As such, those invited to the www.theconcreteinitiative.eu
lunch included representatives from the European www.mineralsday.eu
Commission, the Dutch Permanent representation
to the EU, the European Demolition Association, Or follow us on twitter!
and industry experts. Plenty of food for thought
came out of this debate and the discussions will @cembureau
now continue as the issue evolves. Given the very @concretedialogue
positive feedback on this model, The Concrete
Initiative will continue to organise such thematic
events.

1
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions on resource efficiency opportunities in the building sector. COM(2014) 445

37
ACTIVITY REPORT 2014

about cembureau
Meet the team!

Chief Executive
Koen Coppenholle
economic studies Personal Assistant & HR Manager: energy
& statistics Marie-Hlne Troger department
Manager: Logistics & Real Estate Manager: Director:
Alessandro Sciamarelli Noureddine Chafki Sven Rydahl (Cimeurope)

Assistant:
Mireille Tonnet

industrial policy monitoring & research communications


department department department
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Morais
Personal Assistant: Manager:
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Stella Kirabo
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Vagner Maringolo Assistant (information services): Inna Perova
Latifa Ben Yamoun
Sustainable Construction Manager:
Karl Downey

Health & Safety Officer:


Josphine Reinaud

Assistant:
Sylvianne Liesen

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ACTIVITY REPORT 2014

our board members*


President P. Hoddinott
Vice-President D. Gauthier

Full Members Permanent Alternates

Austria T. Spannagl

Belgium R. Khler F. Doneg

Bulgaria S. Schmidt A. Chakmakov

Czech Republic J. Hrozek J. Chmela

Denmark R. Nicolini M.-L. Braad

Estonia M. Einstein

Finland J. Mintern K. Matikainen

France P. Casanova J.-Y. Le Dreff

Germany G. Hirth C. Knell

Greece S. Baltzis P. Deleplanque

Hungary J. Szarkndi P. Stapfer

Ireland O. Mahon S. Lynch

Italy M. Buzzi F. Pedetta

Latvia I. Madridejos Fernandez G. Russell

Lithuania J.A. Mituzas A. Zaremba

Luxembourg J.-P. Proth D. Beese

Netherlands A. Jacquemart R. van der Meer

Norway G. Syvertsen P. Brevik

Poland A. Balcerek F. Tonetti

Portugal L. Fernandes G. Salazar Leite

Romania M. Rohan F. Petry

Slovenia T. Vuk

Spain I. Miranda Fernandez J. Wagner

Sweden J. Gnge G. Brantenberg

Switzerland U. Sandmeier K. Wenger

Turkey M. Tzn

United Kingdom M.J. Wild C. Law

Members Ex Officio

CEMBUREAU K. Coppenholle

CEMBUREAU C. Lora

* Situation on 15 May 2015

39
ACTIVITY REPORT 2014

our liaison committee of the


cement industries in the eu members*
President A. Chakmakov
Vice-President M.J. Wild

Full Members Permanent Alternates

Austria T. Spannagl

Belgium R. Khler F. Doneg

Bulgaria S. Schmidt

Czech Republic J. Hrozek J. Chmela

Denmark R. Nicolini M.-L. Braad

Estonia M. Einstein

Finland J. Mintern K. Matikainen

France P. Casanova J.-Y. Le Dreff

Germany C. Knell G. Hirth

Greece S. Baltzis P. Deleplanque

Hungary J. Szarkndi P. Stapfer

Ireland O. Mahon S. Lynch

Italy M. Buzzi

Latvia G. Russell J. Muguiro

Lithuania J.A. Mituzas A. Zaremba

Luxembourg J.-P. Proth D. Beese

Netherlands A. Jacquemart R. van der Meer

Poland A. Balcerek F. Tonetti

Portugal G. Salazar Leite L. Menezes

Romania M. Rohan F. Petry

Slovenia T. Vuk

Spain J. Ruiz de Haro I. Miranda Fernandez

Sweden J. Gnge G. Brantenberg

United Kingdom M.J. Wild C. Law

Members Ex Officio

CEMBUREAU K. Coppenholle

CEMBUREAU C. Lora

* Situation on 15 May 2015

40
ACTIVITY REPORT 2014

MEMBERS Lithuania: Akmenes Cementas AB

Austria: VZ Vereinigung der sterreichischen Zementindustrie Luxembourg: CIMALUX s.a.


(Association to the Austrian Cement Industry)
Netherlands: ENCI BV - Eerste Nederlandse Cement Industry
Belgium: Febelcem Fdration de lIndustrie Cimentire Belge
Norway: Norcem A.S.
a.s.b.l. (Association of the Belgian Cement Industry)
Poland: PCA Stowarzyszenie Producentw Cementu
Bulgaria: BACI Bulgarian Association of Cement Industry
(The Polish Cement Association)
Czech Republic: Svaz vrobcu cementu CR (Czech Cement
Portugal: ATIC Associao Tcnica da Indstria de Cimento
Association)
(Technical Association of the Cement Industry)
Denmark: Aalborg Portland A/S
Romania: CIROM Employers Organisation in Cement Industry
Estonia: KNC AS Kunda Nordic Tsement (Kunda Nordic Cement and other Mineral Products for Construction in Romania
Corporation)
Slovenia: SLOCEM Slovenian Cement Producers Association
Finland: Finnsementti Oy
Spain: Oficemen Agrupacin de Fabricantes de Cemento de
France: SFIC Syndicat Franais de lIndustrie Cimentire Espaa (Association of Spanish Cement Producers)
(Association of the French Cement Industry)
Sweden: Cementa AB
Germany: VDZ Verein Deutscher Zementwerke e.V. (German
Switzerland: cemsuisse
Cement Works Association)
Turkey: TMb Trkiye imento Mstahsilleri Birligi (TCMA -
Greece: HCIA Hellenic Cement Industry Association
Turkish Cement Manufacturers Association)
Hungary: MCSZ Magyar Cement-, Beton- s Mszipari
United Kingdom: MPA Minerals Products Association - Cement
Szvetzg (Hungarian Cement, Concrete and Lime Association)

Ireland: Cement Manufacturers Ireland


ASSOCIATE MEMBERS
Italy: AITEC Associazione Italiana Tecnico Economica del
Cemento (Italian Technical and Economic Association of Cement) Croatia: Croatia Cement

Latvia: CEMEX LATVIA Serbia: Cementna Industrija Srbije (Serbian Cement Industry
Association)

For more information about our Members, please see


http://www.cembureau.eu/about-cembureau/members

41
ACTIVITY REPORT 2014

Abbreviations glossary
AEL Associated Emission Level

BAT Best Available Techniques

BREF Best Available Techniques Reference Document

CAD Chemical Agents at Work Directive

CC Carbon Capture

CCS Carbon Capture and Storage

CCU Carbon Capture and Utilization

CDW Construction and Demilition Waste

CEN European Committee for Standardisation

CHRS Comprehensive Health Risk Study

CLP Classification, Labelling & Packaging

CMD Carcinogens and Mutagens Directive

CSI Cement Sustainability Initiative

EPDs Environmental Product Declarations

EU-ETS EU Emissions Trading Scheme

FED Federal Reserve System

FOB Freight on Board

FSEU Fire Safe Europe

GDP Gross Domestic Product

GHG Greenhouse Gas

GNR Getting the Numbers Right

HAL Historic Activity Level

IUCN International Union for the Conservation of Nature

KPI Key Performance Indicators

MEPs Members of the European Parliament

NEEIP Non-Energy Extractive Industry Panel

NEPSI The European Network for Silica

PCR Product Category Rules

RCS Respirable Crystalline Silica

REACH Registration, Evaluation and Authorisation of Chemicals

SDA Social Dialogue Agreement

SPIRE Sustainable Process Industry through Resource and Energy Efficiency

UNEP United Nations Environment Programme

WBCSD-CSI World Business Council for Sustainable Development-Cement Sustainability Initiative

42
Copyright: CEMBUREAU
N Editeur: D/2015/5457/May

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may be reproduced, stored in a retrieval
system or transmitted in any form or by any
means, electronic, mechanical, photocopying,
recording or otherwise, without the prior written
permission of the publisher.

Published by CEMBUREAU
The European Cement Association

Rue dArlon 55 - BE-1040 Brussels


Tel.: + 32 2 234 10 11
secretariat@cembureau.eu
www.cembureau.eu

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Photographs:
Thanks to:
Graphic Concrete Ltd
IStockphoto.com
Corvi from IStockphoto
Claus Bering, photographer