Skyrocketing electricity and gas prices are increasingly posing a threat to businesses operating in the energy-intensive plastics industry in Europe.
While some converters have so far been able to avoid a cost increase due to current contracts, on average, electricity costs have doubled since January, with many companies facing an up to 750 percent higher electricity price than at the beginning of 2022. In numerous countries, wage hikes coming on top of the soaring costs of energy, are leading converters to take a long hard look at whether to continue production—or to stop the processing lines.
According to European Plastics Converters (EuPC), the situation could negatively impact the supply of essential packaged goods in the EU. The association, which represents some 50,000 plastics converting companies, most of which are family-owned businesses, says the dilemma facing these businesses should not be underestimated.