THE EU's industrial giants have worried for months that gas shortages this winter will cripple production, reports Bloomberg.
However, even with fuel available, companies are discovering they can't afford it. 'It's not about shutdowns. It's pricing, it's cost,' said Traton SE chief executive Christian Levin.
EU is paying seven times as much for gas as the US, underscoring an erosion of the continent's industrial competitiveness causing damage to its economy.
With Russian President Vladimir Putin focusing his war efforts in Ukraine, there are signs that gas would be restored to the EU in the near term.
Germany has seen its usual trade surplus dwindle as the surge in imported energy costs offsets its high-value exports of cars and machinery.
Last month, German producer prices jumped 46 per cent. Plastics maker Covestro won't make growth investments in the EU if the crisis persists and instead look to Asia.
Covestro CEO Markus Steilemann declared the company can secure energy at prices 20 times cheaper than in the German and european spot market.
German chancellor Olaf Scholz will travel to the Middle East to nail down deals for Liquefied Natural Gas (LNG) with Saudi Arabia and Qatar to make up for Russia's cuts.
Covestro expects its fuel bill to top US$2.2 billion in 2022, four times its costs in 2020.
'At the current price level, energy-intensive German industry is no longer globally competitive,' said Covestro.
'For a number of chemicals, imports from the US or China are already cheaper than producing them locally.'
Meanwhile, Mercedes-Benz AG has ramped up production of auto parts to stockpile in case it has to close German factories.
Said VIK managing director Christian Seyfert: 'These burdens are causing lasting damage to the industrial core of our economy,'
'We urgently advise politicians to take decisive action so that Germany and Europe as a business location are not completely left behind internationally.'
Germany has been hit harder by the energy shortage than many of its neighbors.
In France, glassmaker Duralex declared it's going on standby for five months even though the company's order book is full and sales are growing.
'Continuing to produce at current prices would be a financial aberration,' said Duralex president Jose-Luis Llacuna.
French President Emmanuel Macron urged small and medium-sized businesses to hold off on signing new energy contracts at high prices.
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However, even with fuel available, companies are discovering they can't afford it. 'It's not about shutdowns. It's pricing, it's cost,' said Traton SE chief executive Christian Levin.
EU is paying seven times as much for gas as the US, underscoring an erosion of the continent's industrial competitiveness causing damage to its economy.
With Russian President Vladimir Putin focusing his war efforts in Ukraine, there are signs that gas would be restored to the EU in the near term.
Germany has seen its usual trade surplus dwindle as the surge in imported energy costs offsets its high-value exports of cars and machinery.
Last month, German producer prices jumped 46 per cent. Plastics maker Covestro won't make growth investments in the EU if the crisis persists and instead look to Asia.
Covestro CEO Markus Steilemann declared the company can secure energy at prices 20 times cheaper than in the German and european spot market.
German chancellor Olaf Scholz will travel to the Middle East to nail down deals for Liquefied Natural Gas (LNG) with Saudi Arabia and Qatar to make up for Russia's cuts.
Covestro expects its fuel bill to top US$2.2 billion in 2022, four times its costs in 2020.
'At the current price level, energy-intensive German industry is no longer globally competitive,' said Covestro.
'For a number of chemicals, imports from the US or China are already cheaper than producing them locally.'
Meanwhile, Mercedes-Benz AG has ramped up production of auto parts to stockpile in case it has to close German factories.
Said VIK managing director Christian Seyfert: 'These burdens are causing lasting damage to the industrial core of our economy,'
'We urgently advise politicians to take decisive action so that Germany and Europe as a business location are not completely left behind internationally.'
Germany has been hit harder by the energy shortage than many of its neighbors.
In France, glassmaker Duralex declared it's going on standby for five months even though the company's order book is full and sales are growing.
'Continuing to produce at current prices would be a financial aberration,' said Duralex president Jose-Luis Llacuna.
French President Emmanuel Macron urged small and medium-sized businesses to hold off on signing new energy contracts at high prices.
SeaNews Turkey
