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Risk for shortage of cement in Sweden

The Land and Environment court of Appeal has, on the 6th of July 2021, decided to reject an application from Cementa AB (“Cementa”) for a permit to continue and expand their mining and manufacturing in Slite, Gotland. Three quarters of all cement on the Swedish market is manufactured in Cementa's factory in Slite.

Following the decision to deny Cementa a review by the Supreme Land and Environmental Court this summer and following talks with the business community, the Swedish government has drafted a bill that would give Cementa the opportunity to continue mining the remaining volume of limestone within the framework of the current mining permit. The Swedish parliament approved the bill on September 29th. This means that the government can process the permit request for continued operations that Cementa has filed.

According to Skanska Sverige AB's (“Skanska”) concrete suppliers, there is a risk that Cementa will be prevented from meeting current demand from Q3, 2022, which in turn will affect the opportunities to manufacture the concrete in demand. However, it is too early to fully assess the impact this will have.

Notification of possible delays and other disruptions

Should a general lack of concrete available on the market become a reality, projects and work places may be directly or indirectly affected, e.g. through adjustment of time schedules and being unable to receive deliveries. Skanska is currently evaluating to what extent (if any) each project/work place may be affected. Skanska will directly inform contractors and supplier’s in affected projects as soon as we have determined whether, and to what extent, a project will be affected.

Skanska, who couldn’t have foreseen nor influence the issue, is taking the situation seriously and is in contact with suppliers of concrete as well as relevant industry associations.

More information:
Cementa
https://www.cementa.se/sv/cementas-taktansokan-i-slite-avvisas-av-mark-och-miljooverdomstolen

Svensk Betong
https://www.svenskbetong.se/nyheter/1246-cementas-taktansokan-avvisas-oroande-besked-med-risk-for-allvarliga-konsekvenser

Tidskriften Betong
https://betong.se/2021/07/15/domen-mot-slite-import-kan-inte-ersatta/

Last updated: 10/1/2021