Benchmark European gas prices have soared by about 340% in a year, as the recent intensification of the Russian-Ukrainian war and the destruction of the Nord Stream gas pipeline have further spread the European energy crisis. Nine European associations representing the wood fiber value chain have urgently called on the European Community and the European Parliament, as well as governments, to take action on the impact of soaring energy prices on the industry.so what is the impact on the packaging industry?
Reduce plastic production
Analysis of the European plastics and petrochemicals market by Break Free From Plastic and the Centre for International Environmental Law (CIEL) shows that the EU imports more than 20% of its oil and nearly 40% of its natural gas from Russia, which can be improved by reducing energy-intensive activities in these sectors. Improve energy security.
Plastics and petrochemicals are the largest industrial users of oil, gas and electricity in the EU, with nearly 40% of their energy being used to produce plastic packaging. Therefore, it is an urgent matter to ensure the natural gas and electricity supply for residents, and to spend the winter smoothly, and to reduce plastic production. This report has also triggered discussions on environmental protection.
Supplier operations are under threat
Extended forest-based value chains have created around 4 million jobs for the green economy, accounting for one-fifth of European manufacturing companies. But their operations were seriously threatened due to skyrocketing energy costs. Today, pulp and paper mills have to make difficult decisions to temporarily halt or reduce production across Europe
More factories and producers are shutting down as energy costs make their operations uneconomical,.
And the energy price crisis has also led to the closure of Portals’ Overton plant. Lecta has just announced that it will be shutting down some of its factories.Historic Swedish paper mill Lessebo Paper has stopped production after the energy price crisis increased electricity costs.These all show that the supply chain crisis is happening.
Imports increase
Because of the local energy crisis, but to maintain the normal development of the business, export business can be added to the supplier plan that has never been considered at this time. At present, international transportation has gradually returned to normal from the epidemic, whether it is shipping, railway Shipping and air freight have returned to normal channels, so it is a wise choice to purchase in countries without energy crisis. At present, European countries are already worried that the sustainable development industry will be affected by the energy crisis, making investors turn to the United States or other markets , so it is very important to choose imports to maintain normal business.
