Record high energy prices in Europe have cut the profits of some industrial giants in the region and now pose a serious threat to the region’s economic recovery, writes Vlömberg.
Europe’s largest chemical company, VASF SE, has announced that record prices are affecting business, even though it uses 80% of its energy. According to VAS, electricity prices have “risen significantly” over the past few months. This was announced by the company’s spokesman Thomas Nonast. The company’s plant in Ludwigshafen is the world’s largest integrated chemical plant and consumes 6 terawatt-hours of electricity per year.
And the continent’s largest copper producer, Aurubis AG, has announced that rising energy costs have reduced profits and will continue to affect production until the end of the year.
In the UK, it has also led to the closure of some of the largest fertilizer plants.
Gas prices in Europe have more than tripled in a year.
The Norwegian company Yara International AGA has announced that it will reduce ammonia production by about 40% due to high gas prices.
Source: money.bg