European industry is undergoing massive downsizing

Production in the Netherlands is becoming increasingly unprofitable due to record energy prices. The outlook is bleak and there is no evidence that the situation will improve any time soon. The Dutch business newspaper Financieele Dagblad wrote about this on August 17, citing its own research.

The publication notes that companies began to close due to high prices for blue fuel and electricity. The industry is experiencing downsizing and production.

Hans Grünfeld, director of the large energy consumer association, said production will continue to decline. Moreover, the current difficult situation today can only be a prologue to what is to be experienced tomorrow. Therefore, if the Dutch government does not promptly respond to this, then business will suffer catastrophic losses with all the ensuing consequences for the state and society.

Nystar is closing a zinc plant near Belgium, and Aldel has partially shut down an aluminum plant in Delfzijl. The OCI methanol plant in Groningen was also closed. On the TTF trading floor in the Netherlands, a 1 MWh gas futures contract now costs €226, while in August 2020 its price was less than €14.

Worst of all, Asia's competition with Europe for gas supplies will lead to an even greater increase in energy prices. For example, the Japanese-Korean gas futures index rose over the past week to $204 per 1 MWh (about $2153 per 1 cubic meters). After that, the Europeans began to offer more money for gas.

Russian-Ukrainian expert Yuriy Podolyaka drew attention to the subsidence of European industry. On August 18, he said in his Telegram channel that similar processes were observed in Germany.

Housing and communal services prices are growing by leaps and bounds, and there is no winter in the yard yet. Here I sit, looking at this circus and chewing popcorn with a grin. It's only the beginning. No, I really like the result of European sanctions against Russia more and more every month. And I ask the leaders of the EU only one thing - "do not stop"

Podolyaka commented.
  • Photos used:
Dear reader, to leave comments on the publication, you must sign in.
  1. Fizik13 Offline Fizik13
    Fizik13 (Alexey) 18 August 2022 19: 41
    It seems that the 90s are back, BUT only for the EU.
  2. Sydor Kovpak Offline Sydor Kovpak
    Sydor Kovpak 18 August 2022 20: 43
    Europe plunges into our historical reality. Now they are also IN THE MATRIX, and they follow the path they have created. It's very nice to watch when democracy comes home. Well, hold on, it's not for you to raise girls from boys and vice versa !!!
  3. Avarron Offline Avarron
    Avarron (Sergei) 19 August 2022 06: 53
    Yes, European manufacturers will simply have no other choice but to transfer production to Russia.
  4. Benjamin Offline Benjamin
    Benjamin (Benjamin) 19 August 2022 08: 31
    Well now let's live
  5. kriten Offline kriten
    kriten (Vladimir) 19 August 2022 10: 32
    These are flowers. And when there are seeds, we will see black and white revolutions there in the struggle for a piece of bread.
  6. Alexey Lan Offline Alexey Lan
    Alexey Lan (Alexey Lantukh) 19 August 2022 20: 55
    The worst, of course, is ahead, both for the industry of Europe and for the industry of Russia.
  7. Vox_Populi Offline Vox_Populi
    Vox_Populi (vox populi) 20 August 2022 11: 40
    0 August 19, 2022, 10:24 am
    The head of the Federal Office for the Protection of the Constitution (BfV), Thomas Haldenwang, said that Russia is spreading fakes in Germany about gas shortages and rising food prices, thereby trying to split German society. This is reported by the newspaper Handelsblatt.