PLASTICS PACKAGING GERMANY
High energy costs hindering competitiveness / Backbone of German economy bears the brunt / IK forecast
Despite an economic forecast which continues to be positive for the German economy in general, the plastics packaging industry sees its development going into Q3 as worsening over the previous quarter.
The country's current energy policy and the associated high costs slapped on the industrial sector are making life difficult for German competitiveness in the rough-and-tumble international business environment.
According to a statement recently released by the German packaging producers association, the Industrievereinigung Kunststoffverpackungen (IK, Bad Homburg; www.kunststoffverpackungen.de), countries such as France, which, the IK says, has electricity costs only half as high, and the US, which pays as little as EUR 0.05/kW hour are confronted with energy costs much lower than what German companies are forced to pay. Meanwhile the cost for the increase assessed by the
The German Renewable Energy Act ("Erneuerbare Energien-Gesetz", EEG) allocation in 2013 is in the 6-digit range for mid-sized companies, which have traditionally been called the 'backbone of the German economy', draining potential funds which could be used for urgently needed investments. Experts are predicting that the EEG allocation could go up to more than EUR 0.7/kW hour in 2014.
The IK's managing director, Ulf Kelterborn had this to say about the stifling situation: "The current concept with its mad costs for industry and consumers is out of control and must be stopped. Otherwise, a number of businesses will not be able to maintain their production in Germany. Already, some larger companies are considering moving elsewhere."
Together with other organisations which represent the small business sector in Germany, the IK is demanding a market economy alignment of the country's energy production. The IK further argues that current developments in the various international energy markets, such as the cost-efficient shale production in the US and the UK, are proof that the German approach to energy fails to meet the grade in the global arena and thus endangers Germany's position as a target for production – present and future.
The country's current energy policy and the associated high costs slapped on the industrial sector are making life difficult for German competitiveness in the rough-and-tumble international business environment.
According to a statement recently released by the German packaging producers association, the Industrievereinigung Kunststoffverpackungen (IK, Bad Homburg; www.kunststoffverpackungen.de), countries such as France, which, the IK says, has electricity costs only half as high, and the US, which pays as little as EUR 0.05/kW hour are confronted with energy costs much lower than what German companies are forced to pay. Meanwhile the cost for the increase assessed by the
The German Renewable Energy Act ("Erneuerbare Energien-Gesetz", EEG) allocation in 2013 is in the 6-digit range for mid-sized companies, which have traditionally been called the 'backbone of the German economy', draining potential funds which could be used for urgently needed investments. Experts are predicting that the EEG allocation could go up to more than EUR 0.7/kW hour in 2014.
The IK's managing director, Ulf Kelterborn had this to say about the stifling situation: "The current concept with its mad costs for industry and consumers is out of control and must be stopped. Otherwise, a number of businesses will not be able to maintain their production in Germany. Already, some larger companies are considering moving elsewhere."
Together with other organisations which represent the small business sector in Germany, the IK is demanding a market economy alignment of the country's energy production. The IK further argues that current developments in the various international energy markets, such as the cost-efficient shale production in the US and the UK, are proof that the German approach to energy fails to meet the grade in the global arena and thus endangers Germany's position as a target for production – present and future.
05.07.2013 Plasteurope.com [225760-0]
Published on 05.07.2013
German version of this article...