The National Slate Federation Warns of the Severe Impact of the Energy Crisis

The National Slate Federation Warns of the Severe Impact of the Energy Crisis

Be Natural Source Article – Photo Credit Cupa Pizarras

The National Slate Federation (FNP) is the principal body representing, defending, and coordinating the interests of the Spanish industry for the extraction, processing, and marketing of natural slate. Spain is one of the world’s largest producers and exporters of slate, and the Federation serves as the central hub for the sector.

The National Slate Federation has issued a statement expressing its deep concern regarding the impact that the current energy crisis—stemming from the conflict in the Middle East—is having on the sector. This crisis is driving a sharp increase in fuel and transport costs, affecting both road and maritime freight. “This situation is directly impacting the competitiveness of a strategic sector for Galicia and Castile and León—one that is highly internationalized and heavily dependent on logistics,” they report.

In this context, the National Slate Federation calls for the adoption of urgent measures to help mitigate rising costs, in line with those already approved for sectors such as agriculture, livestock farming, and fishing. These sectors currently benefit from specific forms of aid—including fuel subsidies (with direct support provided per liter consumed) and financing lines—designed to boost liquidity and help address the surge in costs.

“The slate sector is particularly exposed to this situation due to its heavy reliance on fuel across all phases of its operations. It is an industry that makes intensive use of machinery within quarries and for transporting materials to processing plants, as well as for personnel transport; this entails a very high level of fuel consumption,” states the press release.

Added to this is its strong export orientation, given that around 95% of production is destined for international markets—with approximately 80% of these shipments transported by road—which further increases its exposure to rising transport costs.

Reduced Competitiveness

Furthermore, the sector is witnessing a decline in its competitiveness within international markets, given that it is practically impossible to pass on the rising costs of fuel and transport to the final product price. This situation is compounded by the fact that fuel constitutes the second-largest expenditure item for companies—surpassed only by personnel costs—in a labor-intensive industry.

Consequently, the sustained rise in production and destination transport costs is leading to a progressive loss of competitiveness relative to alternative materials, which could have direct repercussions on the sector’s standing in international markets.