Nickel in Italy
- Italy is a major user of nickel. Total Italian use in 2002 was 117 kte (primary and recycled nickel
units) which represented around 16% of EU demand. This demand is satisfied through a combination of imports
of refined nickel and recycling of existing nickel.
Whilst the nickel industry itself is relatively small, it has a significant impact on the Italian economy through its value-chain. Through its critical use in nickel-containing alloys, it has a major impact on leading Italian industries such as stainless steel. In turn, the use of nickel-containing alloys in many important products manufactured in Italy means that the impact of nickel is substantial in many end-use markets.Nickel in Italy Value-added (Euro Million)
Employment Direct nickel industry/recycling 500 3,000 “First Use” 1,700 21,000 Intermediaries 1,000 21,000 “End Use” 3,300 60,000 Total 6,500 105,000 - As a consequence, the total value-added in Italy by nickel and its value-chain is estimated to be Euro 6.5 billion.
- Italian companies add relatively more value in the "First Use" sector than companies in other countries especially in stainless steel: 41% in Italy compared with 30% in the rest of the EU. They add relatively less value in "End Use" industries than companies in other countries: 46% in Italy compared with 64% in the rest of the EU.
Moreover, the direct nickel industry and the industries in its value chain that are
critically dependent upon it, employ a substantial number of people. Total employment in Italy in the direct
nickel industry, "First Use" industries and intermediaries, and "End Use" industries that are critically
dependent on nickel is estimated to be approximately 70,000. Some 35,000 additional jobs have been created in
the economy through income and supplier "multiplier" effects, and capital expenditure effects. This
represents around 105,000 jobs that are "critically dependent" on nickel.- The industry and its value-chain also contribute significantly to the Italian economy through high levels of investment. Total research and development by the direct nickel industry and industries critically dependent on nickel is estimated to be Euro 250 million. Annual capital expenditure by these sectors is estimated to be Euro 300 million and total capital employed is estimated to be Euro 5 billion.
- The nickel industry and its value-chain also account for substantial tax revenues. Total taxes (on employment and sales) paid by the direct nickel industry and industries critically dependent on nickel are estimated to be Euro 2.1 billion per annum. This excludes corporate taxes.
Notes
In 2003 ENiG commissioned The Weinberg Group to conduct a comprehensive independent European socio economic impact analysis for the Nickel Industry. The purpose of the study is to gain a detailed and accurate understanding of the importance of the nickel industry to the economic prosperity of Member States. The full report is available to interested parties and a series of summarised fact sheets has been produced. This glossary provides explanations for commonly used terms within the report and fact sheets.
Direct industry: the primary European (mining, refining) nickel industry, the importation of raw nickel, the importation and trading of finished products, transportation of nickel and recycling (this includes collectors, processors and scrap dealers)
End use: all end use industry segments where nickel is an essential component in either the production process or the end product itself. It is considered essential if the product would not perform either at all or as well without nickel or where exclusion of nickel would increase the price significantly
First use: industries where nickel is alloyed to produce stainless steel, and alloy steels and nonferrous alloys plus foundry and plating
Nickel dependent products: Products where a nickel containing alloy significantly transforms either the process or end product and where this effect cannot be achieved in any other way or, if an alternative is used, performance is significantly reduced, the process would be substantially disadvantaged or the price would be significantly higher
Supplier “multiplier” effect: the effect by which, for each expenditure on goods or services by companies and people in the nickel industry, additional jobs are created
Value-added: the amount by which the value of an article is increased at each stage of its production, excluding the initial cost of the nickel. Expressed another way, value added is the turnover of companies in the nickel and nickel using industries less imported raw material costs.
The full Weinberg report on the socio-economic impact of the nickel industry in the EU is available on request.
For further information contact:
Rosemarie Evans
Telephone: 44 1527 584777
revans@nickelinstitute.org
Paola Di Discordia
Téléphone : 32 2 775 6313
didiscordia@euronickel.org
