EU Metal Production Faces Severe Threat From Energy Crisis

SEATTLE (Scrap Monster): The industry association Eurometaux noted that the metal producing plants in the EU region faces severe threat from rising energy costs. The region needs to act quickly to reduce power costs, so as to prevent the permanent closure of plants in the region.

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In a letter addressed to EU Commission President Ursula von der Leyen, nearly half of the EU aluminum and zinc production capacity have gone offline due to power crisis. The association called for a relief package of up to Euro 50 million for struggling companies. The regional governments must take necessary actions to cap taxes and surcharges on power and gas and create an emergency relief fund to the rescue of energy-intensive industries, the letter said.

Eurometaux warned that the energy crisis tends to pose an existential threat to the future of metal production in the EU region.

The letter signed by nearly 40 European companies called upon EU and member state leaders to take emergency action to preserve their strategic electricity-intensive industries and prevent permanent job losses. It urged the EU to ask member states to provide financial help through the carbon compensation scheme.