Recent steel plant closures are having a major impact on the UK’s lime industry, according to the
The recent announcement of the decision to mothball the Lhoist Thrislington, County Durham, England, dolomitic lime production plant with 40 job losses is a direct result of weakening UK steel manufacturing, says the MPA, the UK’s trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and silica sand industries.
“The recent steel plant closures are having a large knock-on effect on the lime industry,” said Dr Pal Chana, MPA’s executive director. “Alongside this, the UK’s energy and carbon policies are diminishing the competitive position of the sector. Lime has not yet benefitted from any state relief through the EII package and it is vital the sector receives maximum carbon leakage protection in the tiering system that the UK is advocating for the reform of the EU ETS”.
The steel and lime industries are highly energy intensive and face spiralling energy and carbon costs as a result of ‘green levies’. Like steel, lime is internationally traded and at present UK’s energy and carbon policies are diminishing the competitive position of the industry.
High calcium and dolomitic lime are used extensively as a flux for removing impurities in the production of iron and steel and, in total, 35% of all industrial lime and dolime production is said by the MPA to be sold directly to the industry. The lime industry, traditionally located in rural areas with limited other employment opportunities, is also an important supplier supporting the UK construction, manufacturing and agricultural sectors.
The British Lime Association (BLA), part of the Mineral Products Association (MPA), represents the interests of the three main UK lime manufacturers, covering more than 75% of the industrial lime sold in the UK. Over 1.25 million tonnes of lime, made from quarried limestone or chalk, is produced every year with approximately 20% of sales exported to EU and non EU countries.