Sweden faces "very serious" economic impacts as environmental ruling closes cement plant
The closure of Sweden's biggest cement factory on environmental grounds could cause up to 400,000 job losses and wipe out the country's GDP growth, according to an alliance of construction bodies.
Work could grind to a halt on three-quarters of all house-building projects and the construction sector could lose more than 20 billion Swedish Kronor (SEK) per month.
Work on infrastructure projects including Foster + Partners' Slussen masterplan in Stockholm could also be impacted.
The warning came from Byggföretagen, a body that represents construction firms in Sweden.
"Sweden is facing an extensive construction halt," it said. "By November, three out of four new homes will not be able to start construction. Several major infrastructure projects are stopped or delayed. Between 200,000 and 400,000 jobs are threatened." Cement plant license rejected on environmental grounds
Byggföretagen based its figures on an impact assessment prepared in the wake of a decision by Sweden's Supreme Land and Environmental Court last week to reject a new licence for the Cementa cement plant at Slite in Gotland.
"The construction industry's share of GDP is about 11 per cent," Byggföretagen said. "The industry contributes almost SEK 40 billion in tax revenue to health care, schools and care. The construction halt thus risks displacing the entire GDP growth in 2022."
Top image: the limestone quarry on Gotland. Above: the Cementa plant is set to close
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