On September 7, 40 European Metals Group CEOs wrote to the EU saying: “If energy prices are not controlled, the European metals industry will be life-threatening and Europe will be permanently deindustrialized.”
Notably, the letter highlights that 50% of the EU’s aluminium and zinc capacity has been shut down due to the power crisis that has forced producers of silicon, ferroalloys, copper and nickel to shut down. The group warned that the shutdown could lead to permanent closures and job losses. Several businesses have also announced extended shutdowns over the past month, and more are on edge as winter approaches.
Production cuts in zinc, aluminium and silicon have left consumers in Europe’s steel, auto and construction industries facing severe shortages that are being offset by shipments from China and elsewhere. “Chinese production is 2.5 times more carbon-intensive than European zinc production, 2.8 times aluminum and 3.8 times silicon. We estimate that European replacement imports of aluminum have increased by 6 million to 12 million tons this year.”
“Producers face electricity and gas costs more than 10 times what they were last year, far exceeding the selling price of their products,” the group said.
The letter also urges European and national governments to consider all alternatives to protect businesses and their futures. The problem requires a comprehensive set of solutions, emphasizing that “in this unprecedented situation, no option should be ruled out.”
Specifically, the chief executives want the European Council to take interim action to address exorbitant prices for fossil fuel generators, minimise the impact of the additional carbon cost of an emissions trading system and provide further support for companies, among other demands.
It is crucial that the European Commission at this critical time avoid further regulatory burdens on struggling businesses, diversify gas supply sources and assess the possibility of interim solidarity measures to balance other specialties during the crisis. sector windfall.
In and after an emergency meeting on Friday, the company called on the European Council to take quick and comprehensive action to resolve the crisis.
In addition to the metal industry, ceramics is the industry most affected by the energy crisis. There are 102 ceramic companies in Spain, including 92 tile factories and 10 oil injection factories, creating 17,000 direct jobs and more than 60,000 indirect jobs for Spain. 95% of these ceramic companies are concentrated in the province of Castellón, and the Spanish Association of Manufacturers of Ceramic Tile and Ceramic Flooring (ASCER) has warned of an avalanche of closures in the ceramic industry due to the energy crisis. Most companies are currently choosing to reduce production, stop some kilns or cancel shifts as measures to reduce energy.
BATHVO is also committed to environmental protection and solving the global energy crisis, launching electric towel racks instead of traditional hydronic racks.
