Closure Of A Factory In Europe As A Result Of Rising Gas And Energy Prices
Here is a perfect example of rising gas and energy cost shutting down a mill from the second largest steel company in the world. In a recent article in The Economic Times.
ET Spotlight Special Last Updated: 06 September, 2022 05:54 PM -4 GMT
Synopsis
Following the Russian invasion of Ukraine in February this year, Moscow shut off gas shipments to Europe, raised prices, and posed a risk of recession and energy shortages as winter is approaching.
The second-largest steel producer in the world, ArcelorMittal, is the most recent business name to announce the closure of a factory in Europe as a result of rising gas and energy prices.
Due to the outrageously high surge in energy prices, ArcelorMittal is shutting down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany, starting by the end of September until any further updates.
The decision was made by the steel giant in parts due to weak market demand, a bleak economic outlook, and consistently high CO2 expenses in steel manufacturing.
