Ceramics industry warns of ‘imminent collapse’ due to skyrocketing energy costs

  • Lusa
  • 7 January 2022

The Portuguese Ceramic Industry Association (APICER) "warns of the real danger of structural collapse of the sector with many companies currently stopped due to the cost of energy."

The Portuguese Ceramic Industry Association (APICER) on Friday warned of the “imminent collapse” of the sector due to the “exponential increase” in energy costs, which last year rose 300% in electricity and 400% in gas.

In a note sent to Lusa, APICER “warns of the real danger of structural collapse of the sector with many companies currently stopped due to the cost of energy which represents between 30% and 40% of the production costs” of companies in the sector”.

Added to this is the cost of carbon emission licences on the European market, “whose increase has also been exponential”, stresses the association.

“Companies in the sector are being heavily penalised by the unprecedented increase in fuel prices, namely natural gas,” explains APICER president José Luís Sequeira, quoted in the statement.

“If we take into account that the ceramic industry is one of the largest consumers of natural gas in manufacturing industry, we can understand the enormous difficulties currently faced by companies, which will have inevitable consequences in their activity,” he warns.

The ceramics industry has 1,200 companies and almost 1.85 billion euros in turnover, and is responsible for 18,500 workers, “being a strong exporting sector with an international presence in 160 markets.