Participation of Mr Gibellieri to the High-Level Conference on Energy-Intensive Industries in follow-up to the Extra-ordinary Competitiveness Council on Steel of 9 November 2015 in Brussels on 15/02/2016

Report

Please, note that the EC officials are preparing a minute of the conference and they will send it to me as it will be ready. I am drafting this short report following the conference agenda and putting in evidence the main point raised in the various panels. No power points presentations were introduced at the conference because the member of panels intervened without any written support. It should also be noted that during the conference, a manifestation organized by European Employers sectoral organizations, with the participation of some national trade union organizations, against the recognition of MES to China was passing by the Berlaymont building and that debate in the conference was very much influenced by this event.

10.00 – 10.20: Opening address – the challenge of competitiveness

  • Jyrki Katainen, European Commission, Vice-President for Jobs, Growth, Investment and Competitiveness

In its introduction to the conference, EC Vice President Katainen indicated the main objectives of the High Level conference underlining the importance for the EU of these sector producing materials that are at the beginning of the main value chains of the European industry. He also recalled the objectives of the actual European Commission for growth and jobs by increasing investments in innovation and education.

10:20 – 11.10: Panel I – Shaping an innovative and competitive future

Moderator – Gwenole Cozigou, Director DG GROW, European Commission

  • Rudolf Strohmeier, European Commission – Deputy Director General of DG Research & Innovation
  • Gervais Jacques, Chief Commercial Officer, Rio Tinto Aluminium
  • Klaus Sommer - President of A.SPIRE, Bayer
  • Philippe Sauquet, President, Refining & Chemicals, Total
  • Maurizio Gattiglio, Chairman of European Factories of the Future (Executive Vice President Prima Electro
  • Stefan Savonen, Vice-President Energy and Climate, LKAB

Very interesting panel because participants were really representative of the main EU EIIs sectors. Many positive examples were introduced by the various panellists but some criticism was raised on the effectiveness of the EU research and innovation programs. Very big attention were given to energy efficiency, reduction of CO2 emissions, cooperation among various sectors in the framework of circular economy, lack of investments in particular for the pilot and demonstration very expensive projects. Positive evaluation have been expressed on the new instruments like the PPPs for the implementation of Horizon 2020 and the need to reinforce this approach base on the full participation of industry to the process. Particular attention has been given of the influence of the general economic situation and of the fact that investments are decided looking to a world without borders, to short term return and taking in to account of the legislation. This matter will be at the core of the CCMI/142 SG on the role of JTIs and PPPs. In the panel two important PPPs were represented, SPIRE and FoF (Factory of the future).

11:10 – 12:10: Panel II – Ensuring free and fair trade

Moderator – Jacques Pelkmans, CEPS

  • Jean-Luc Demarty, European Commission, Director General of DG Trade
  • Karl Köhler, Managing Director and CEO of Tata Steel in Europe
  • Heimo Scheuch, Cerame-Unie Vice-President, CEO of Wienerberger
  • Georges Kirps, Director General – EUROMETAL
  • Erik Jonnaert, Secretary General – European Automobile Manufacturers' Association (ACEA)
  • Gerhard Seyrling, President of T&D Europe, the European Association of the Electricity Transmission & Distribution Equipment and Services Industry, General Manager at GE Grid Solutions
  • Bart Samyn, deputy Secretary General – IndustriAll

This panel has been the most delicate one because it is very much influenced by the actual situation of trade on the main EU materials like steel. Huge increase in import from China in the perspective of the recognition of the Market Economy Status to China. China steel industry in actually producing while its losses are more and more evident and taken over by national and local governments. In the same time, the reduction of domestic consumption of steel and other materials push towards the export of these materials in other part of the world at very low and destructive prices. In the steel sector China is also suffering of a huge over capacity of estimate in more the 300 million tons and it is still growing because the Chinese government did not blocked investment for new plants. Mr Kolher said that a Tata steel plant in the Netherlands, among the best three performers in the world on the basis of environmental sustainability is in danger as a consequence of destructive imports from China and other countries. He also said that the EU is exporting jobs and importing CO2 and the trade deficit of the EU with China is about 180 billion of Euros. There is the need to increase and accelerate the use of the Trade Defense Instruments (TDI) also working on their modernization for an effective and quick reaction to the threads. The EU industry must be protected. The CCMI is going to produce an opinion on the consequence of the recognition of MES to china and on the other related trade aspects.

12:10 – 12.30 Keynotes

  • Vazil Hudak, Minister of Economy of the Slovak Republic
  • Patrizia Toia, Member of the European Parliament, Vice Chair of ITRE Committee

The Slovak Republic will assume the Presidency of the EU in the second semester 2016 and Mr Hudak said that issues related to EIIs will be high in the agenda of the Slovak presidency. More of 20% of the SR is coming from manufacturing activities and the safeguard of these sectors are of paramount importance for both the SR and the EU.

Mrs. Toia informed about the initiatives of the ITRE Committee of the European Parliament sustaining the EIIs.

12.30 – 14:00 Lunch

14.00 – 14.45: Panel III - Opportunities through the European Fund for Strategic Investments

Moderator – Miguel Gil Tertre, Cabinet VP Katainen, European Commission

  • Iliyana Tsanova –Deputy Managing Director - European Fund for Strategic Investments
  • Mario Caldonazzo, CEO, Arvedi Tubi Acciaio
  • Alessandro Gilotti, CEO RaM, Raffineria di Milazzo
  • Luís Martins, Vice-President, Assimagra - Recursos Minerais
  • Carl De Mare, Head of Emerging Technology Development, ArcelorMittal

Other concrete examples concerning projects financed under the European Fund for Strategic Investments (better known as the Junker plan) were introduced in this panel. The fund is designed to sustain strategic projects targeted to increase the sustainability of the production sectors. They imply the strong commitment of the enterprises giving warranties to the bank loans. For the moment 108 projects have been approved for a total investment of about 50 billion Euros. I personally know very well the project introduced by the Arvedi Group for the innovation in its steel plants in Italy.

14.45 – 15.40: Panel IV - Opportunities through the Circular Economy Package

Moderator – Sabine Weyand, Director Secretariat General, European Commission

  • Kestutis Sadauskas, European Commission – Director of DG Environment
  • Dirk Vandenberghe, Eurometaux President, CEO of Metallo Chimique
  • Francisco Rubiralta, CEO CELSA Group
  • Daniel Gauthier, CEMBUREAU President, CEO Heidelberg Cement
  • Christian Skilich, COO Mondi Europe & International
  • Christer Forsgren, Head of Technology and Environmental Science, Stena Metall

The EC produced recently a communication and a package on circular economy. Various positive examples, coming from the represented sectors, have been presented in the panel. Particular interest for the SUSTEEL initiative in the steel sector introduced by Mr. Rubiralta, for the production and certification of sustainable steels for the construction sector through increased recycling and energy efficiency and higher environmental performances. Other example from the cement sector that use the blast furnace slag and other wastes coming from other sectors for the production of cement saving natural resources and reducing energy consumption. Also the reuse of products before recycling has been raised by the panel. Although the circular economy concept is not new for the most part of EIIs, its improvement is very important for the sustainability, the reduction of waste dumping and the substitution of primary raw material with the secondary ones. Please, note that CCMI produced an opinion on secondary raw materials based on this approach.

15.40 – 15:50 Next steps: Taking things forward in the scope of the HLG EII

 Rapporteur of the 1st Meeting of HLG EII – Mattia Pellegrini, Head of Unit, Resource Efficiency and Raw Materials, DG GROW

Mr Pellegrini reported on the result of the last meeting of the High Level Group on EIIs. I have already produced a report on this point after my participation to that meeting.

15.50 – 16.40: Closing session

Introduced by: Lowri Evans, Director-General, DG GROW, European Commission

  • Anna Soubry, Minister of State for Small Business, Industry and Enterprise of the United Kingdom
  • Emmanuel Macron, Minister of the Economy, Industry and Digital Sector of France
  • Henk Kamp, Minister of Economic Affairs of the Netherlands

This session has been, in my view, the most politically important part of the conference for the high level of participant, Ministers of three EU important Member States.

The three ministers made reference to the results of the conference panels and were all concerned by the gravity of the situation of the EU EIIs sector exposed to the unfair competition of China and other countries on the EU market. The underlined the they did not listen in the intervention of the EEIIs representatives request of subsidies but the request of a real level playing field in order they can compete on the base of a loyal game without handicap and tricks.

The French Minister in particular said that EU must protect its industry in order to avoid dependence of strategic industrial sectors on imports from outside. He also referred to the proposal of the Commission on ETS after 2020 and that cannot penalize the EU industry.

He made reference to the letter of a group of EU Member States on the steel industry sent recently to Mr Juncker, president of the EC, asking for immediate action. He made also informed the conference that also other MSs joined the initiative and that they are going to raise the matter at the next EU Council of Ministers.

The Minister of the Netherlands, the actual EU Presidency, committed himself supporting this position in the councils of the current presidency and the same did the UK Minister.

16.40 – 16.50: Closing speech

  • Elżbieta Bieńkowska, European Commission, Member of the European Commission for the Internal Market, Industry, Entrepreneurship and SMEs

The commissioner Bienkowska, concluding the conference, put in evidence the recent initiative of the Commission on the steel trade with three new antidumping initiatives against imports from China and other countries and other similar initiatives on other products. She said the industry is responsible for investments and job creation and the EC can help with an effective accompanying legislation. She said that the High Level Group on EIIs will continue its activity and support the Commission in its activity.

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