UK Ceramics Industry Hit by Rising Energy Prices
Soaring energy bills threaten to collapse the UK’s ceramics industry as energy-intensive industries in Europe continue to suffer from high energy costs.
Bloomberg reports that some ceramics companies have seen their energy bills rise tenfold. reports. Due to rising costs, many manufacturers are forced to cut production and create jobs.
The main association stated earlier this month that despite the recent support from the UK government to help businesses cope with rising energy costs, the ceramics sector still needs support.
This year has been difficult for the industrial area surrounding Stoke-on-Trent. Many companies had to close their doors due to unsustainable costs.
Wade Ceramics, Stoke-on-Trent’s pottery company, opened their doors in the early part of this month ceased to trade and laid off 130 staff after seeing its annual energy bill jump by $604,000 (£500,000).
Around a fifth of the 7,000 jobs in the UK’s pottery sector are at risk of disappearing over the next 18 months unless ceramics firms get additional financial support to cope with surging energy costs, GMB Union lead organizer Colin Griffiths told Bloomberg in an interview.
The British Ceramic Confederation (BCC), which was established earlier this month, announced its intention to publish a report. said For the future of UK ceramics, it is vital that there is ongoing government energy support.
“UK ceramics is one of the most energy-intensive manufacturing industries in the UK, due to the need to fire products at very high temperatures. Therefore, the energy crisis has delivered a body blow to our sector,” said Rob Flello, chief executive of the BCC.
“As a gas-intensive industry, the rising costs are unsustainable, with manufacturing facing 10-fold and at times far higher energy price increases. Such volatile energy prices are adding tens of millions of pounds to company bills, with some seeing rises from £1.1m for six months to nearly £12m. Gas increases of up to 20 times previous levels are simply not sustainable,” Flello added.
“Whilst we welcomed the Government’s non-domestic Energy Bill Relief Scheme as a lifeline, their announcement of a review sparked concern. We warned that the industry could be in danger if it was cut off by the Government. The Government must not leave us in a precarious position.”
By Tsvetana Paraskova for Oilprice.com
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