The CEO of the world’s largest steel manufacturer has issued a grim warning as plants continue to shut down amid the mounting energy crisis.
Reiner Blaschek, the CEO of ArcelorMittal Germany, warns that the German wing of the company can no longer compete due to soaring energy costs.
The energy crisis in Germany is turning into a manufacturing crisis, Blaschek warns.
Blaschek is raising the alarm after ArcelorMittal was forced to recently shut down two key plants in the country.
“Production in Germany is currently no longer competitive,” said Blaschek.
“We need competitive energy prices for industry,” he added.
Blaschek’s calls for quick political intervention come as energy costs soar in Europe.
Gas and electricity prices, which have soared in recent months due to sanctions and Russia’s decision to cut gas flows, have left many industrial companies with input costs too high to remain profitable.
Many economic experts are forecasting further pain for Germany’s core industrial sector, which would have knock-on effects for the rest of the German economy.
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