Engineering and Metalworking Industries- Think strategic for Europe EESC hearing - Granting Market Economy Status To China Brussels, April 5 2016 Željko Pazin Orgalime Trade Policy Manager

42 member associations, 24 countries 130,000 companies, €1,800 billion of annual output, >10,3 million people employed Great Britain BEAMA EAMA GAMBICA Hungary MAGEOSZ Ireland IEEF Italy ANIE ANIMA Latvia MASOC Lithuania LINPRA Luxembourg ILTM The Netherlands FME METAALUNIE Norway Norsk Industri Poland PIGE Portugal AIMMAP ANEME Slovenia GZS-MPIA Spain SERCOBE National Associations Austria FEEI FMMI Belgium AGORIA Bulgaria BASSEL Croatia Croatian Chamber of Economy HUP Denmark DI Finland Federation of Finnish Technology Industries France FIEEC FIM Germany VDMA WSM ZVEI Switzerland SWISSMEM Sweden TEKNIKFÖRETAGEN Associate members Turkey MAKFED Sector Associations AFECOR CEIR EFCEM EGMF EURALARM EUROPUMP FEM PNEUROP

European Manufacturing Production – Orgalime 28% Mechanical, electrical, electronic, metalworking & metal industries employ some 10.3 million people in the EU and in 2012 accounted for some €1,840 billion of annual output. The industry not only represents some 28% of the output of manufactured products but also a third of the manufactured exports of the European Union. Manufacturing of fabricated metal products, which is represented by Orgalime, accounts for 7% of the total value of manufacturing in the EU. The manufacturing of basic metals accounts for 5% of the EU. Orgalime also represents mechanical, electric and electronic engineering, which are important users of metals. Production value in 2012 Source: Eurostat

Orgalime industry in EU manufacturing 36% of enterprises  Source: Eurostat – data refer to 2013

EU industry: shares in total steel consumption Sources: European Steel in Figures, 2009-2013, Eurofer

Snapshot of Orgalime … Voice of the engineering industry on selected issues affecting multiple sectors of our industry Early warning and monitoring Coordinate industry positions Service European Sector Associations / EFFRA Orgalime in numbers: 50 issues with focus on industrial policy, technical, energy and environment legislation, trade, R&D, legal issues, publications 45 positions per year 21 European associations serviced 28 staff Trade Defense Instruments: We have a double role; interested in a balanced approach 185 internal meetings per year (2011) Network

Fabricated metal products The so-called ‘invisible’ sector Mainly divided into four sub-sectors: Metal processing (casting, forging, coating metals) Construction metalwork, usually closely linked to the building industry Boilers, metal containers and packaging Metal products Fundamental link in the EU’s manufacturing supply chain Sectors activities: Steel working fabrication for the civil engineering industry Vessels construction, containers and steam-generating boilers for the the processing industries Production of metal articles such as cutlery, wire, springs, locks… 90% of our metalworking industries are SMEs, distributed throughout the territory of the EU

Invisible but… They represent 388,000 companies in the EU 27 MS in 2010 (largely SMEs) They employ 3.6 million people, representing 11,9% of the total manufacturing workforce, being the 2nd largest after food product manufacturing (vs. Eurofer: 330,000 people employed*).   They generate 149 billion euros of value added Germany had the highest value added in the fabricated metal sector, followed by Italy, France and the United Kingdom Sources: Eurostat * Source: Eurofer

European Steel Industry 330,000 employees Turnover: approx.  170 billion euros EU production: 170 Million tonnes

Metalworking vs. steel industry 3.6 million employees European companies with global reach Family- owned In all EU countries Fundamental part of EU social and manufacturing fabric High value-added sector 330,000 jobs Increasingly global « Family » owned and stock exchange listed In a few EU countries Global-based investment decisions High margin sector

What are we asking for? EU needs free and fair trade on steel, as well as aluminium, copper etc Transparency Fair treatment of the interests of steel users vs. steel producers Open Markets Fair burden sharing across the supply chain Only use trade defence instruments, if real damage to an industry – do not use them as a political tool Keep all these facts in mind when doing TDI reforms or discussing the granting of MES to China Community interest a must