Inflation and especially gas supply constraints are causing headaches for the industry. An example from a factory that makes tiles.
Even if Germany’s natural gas storage facilities are 75% full and Russia continues to supply Germany with even reduced gas, supplies for the winter may not be sufficient. Many branches of industry, such as the chemical industry and metallurgy, where a large consumption of energy is required are not at all certain how they will be able to function. And of course they are not the only ones. Manufacturers and processors of glass, stone, soil, ceramics have similar problems as for example the German company Steinzeug that manufactures tiles.
“It would be a lie if I told you that everything is under control. It is not,” says Dieter Schaefer, a member of the board of directors of the company Steinzeug. It is the largest tile manufacturer in Germany for 37 years. The company’s problem is that it needs large amounts of energy. This was not a problem for a long time because Russian gas was cheap. Today the sharp increase in energy costs is creating problems for the company.
“The last year when things were normal was 2020. Then we paid around 13 million euros for all four factories, this year we paid 31 million euros. It’s a lot of money, he emphasizes.”
Inflation is also negative
Liquefied gas or biomethane is not an alternative for the company because the burners will have to be changed. According to the German authorities, it seems that for now the stocks are sufficient for the coming winter. But what if there is no longer enough natural gas for all German companies in the winter? As Dieder Schaefer says according to the competent services, the company is not considered systemically important and for this reason they would reduce the quantities of natural gas.
Dealing with customers, he adds, has also become difficult for the company, which has a history of 150 years and pioneered in recent decades. High inflation and problems in the economy are leading many Germans to have less money.
“I think renovations as well as new construction will slow down in the next few years. The problem with us is that we sell products that are directly related to the customer’s affordability. If they don’t like the tile they have in their house, that’s okay. to continue living with them. And that’s a big difference from other companies,” he emphasizes.
Insa Brende
Edited by: Maria Rigoutsou
Source: Deutsche Welle
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
