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Surging energy costs put German industry ‘really in danger’
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For many industrial companies in Europe, high energy costs have been a big concern, especially since Russia’s 2022 invasion of Ukraine.
PHOTO: ANDREAS MEICHSNER/NYTIMES
Eshe Nelson
- Energy costs in Europe, especially Germany, were already high before the Iran conflict exacerbated the situation, impacting industrial competitiveness.
- German industries face rising energy prices and struggle to compete with cheaper exports, hindering economic recovery and leading to job losses.
- Companies are adapting by diversifying energy sources and hedging costs, but concerns remain about storage levels and emissions regulations.
AI generated
LONDON – Mr Max Jankowsky represents the third generation of his family to run a foundry in eastern Germany, but he is worried that history might end with him.
The foundry, GL Giesserei Loessnitz, makes metal presses used by carmakers like Volkswagen and BMW. It consumes vast amounts of electricity, natural gas and coke, a coal-based fuel. And the cost of all that energy is crippling his business and thwarting his efforts to move away from fossil fuels.
