Paper production in Italy haunted by Russia sanctions – industry — Analysis

A trade association’s chief said rising costs were forcing many plants to cease operation for now

Rising energy costs are causing more paper and cardboard producers in Italy to stop production as a result of the armed conflict between Russia, Ukraine and Russia. On Tuesday, Assocarta chief Lorenzo Poli warned that energy crises were affecting all levels of production.

Poli claimed that while the industry has been battered already by the pandemic, the sector is still resilient. “held out, even producing at a loss,”However, the rise in energy costs has caused further damage to the paper industry in this country. The European Union should also be urged to immediately take steps to at least partially offset the adverse effects of this crisis.

Francesco Zago, CEO of Italy’s Pro-Gest paper-manufacturing group, told Corriere newspaper that he had to invoke force majeure and “temporarily stop the production”At six plants. Zago says that there are six plants. “price of natural gas today is more than ten times higher than twelve months ago and has tripled in just over a week.” He echoed Poli’s calls for authorities to support the industry, stressing that while a ton of paper goes for roughly 680 euros, energy costs alone currently total 750 euros per that amount of paper.

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Italian media estimate that there are approximately 150 paper factories in the country. The industry will generate a turnover of 8.18 trillion by 2021, according to estimates.

Following Russia’s military offensive in Ukraine and the subsequent sanctions imposed on Moscow by the West, natural gas prices have reached record levels in Europe, with an all-time high of 345 Euros per megawatt-hour recorded on Monday.

Europe relies heavily on Russian energy imports. Officials acknowledge that the cost of electricity in many countries will continue to rise in the future.

The EU, as a whole, and individual members, have pledged to reduce their dependence on Russian oil imports. This will speed up the transition to renewable energy. Others options are being looked at, like imports of liquefied petroleum gas from Middle Eastern countries.

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