Thuringia: Metal and electrical industry fears company closures

Erfurt (dpa/th) - In the Thuringian metal and electrical industry, there is growing concern about company closures as a result of the cost explosion.

Thuringia: Metal and electrical industry fears company closures

Erfurt (dpa/th) - In the Thuringian metal and electrical industry, there is growing concern about company closures as a result of the cost explosion. Half of the 22 companies surveyed see themselves economically at risk due to the energy crisis, according to a flash survey published on Wednesday by the Association of the Metal and Electrical Industry. For almost every fifth company, the costs have increased to an extent that is in danger of surviving. Compared to 2020, purchasing costs had increased by 93 percent and further increases of 25 percent are expected in 2023.

According to the information, the costs for electricity and gas in particular have risen to a point where the existence of almost a quarter of the companies is threatened. 50 percent of companies are affected by cancellations or postponements of orders. The companies tried to save gas as far as possible, but further restrictions on gas deliveries would hit the companies significantly, it said.

According to the information, 22 Thuringian ME companies with 10,654 employees took part in the survey from September 29 to October 10, 2022. It thus comprises 21.2 percent of the companies and 37.1 percent of the employees.