Heidelberg attacks EU carbon trading plans

HeidelbergCement says the European Commission's planned extension of its emissions trading scheme in 2013 could threaten cement production in the EU. The company cites studies by management consultants McKinsey and the Boston Consulting Group that say the price of the emissions permits that will be required to produce and transport cement could reduce the price competitiveness of EU-manufactured cement by -50% to -100% by 2020.

HeidelbergCement, which has 36 cement plants in the EU, 12 of which are in Germany, said that in the worst case scenario the scheme could add € 920 million to its annual costs from 2013. "If we were forced to close the German plants, for example, we could offset this with the construction of two new high-performance production facilities in China with an investment volume of € 300 million", said Dr Bernd Scheifele, chairman of the company's Management Board.

The company employs 8200 people in Europe, 1500 of whom are based in Germany.

Dr Scheifele continued, "The cost advantages of China would almost double as a result of the CO₂ expense, making competitive domestic production in Europe no longer an option. It would be feasible to supply European markets from locations outside the EU via an efficient trading network."

HeidelbergCement says it has made significant reductions in CO₂ emissions in recent years. Having set a goal of reducing emissions per tonne of cement by -15% by 2010 it exceeded this, claiming to have achieved a decline of -18% in Germany and -20% in Europe by 2007. A company statement said, "Through their use of innovative technology, the European plants are among the most efficient locations worldwide in terms of CO₂ reduction. This technology is being transferred to all cement plants throughout the Group."