EURATEX observes rising energy prices to force T&C sector to shut down ops

05 March 2022, Mumbai:

The war between Russia and Ukraine is already having a negative impact on companies in Europe and other areas of the world. Energy and gas costs are once again increasing, and EURATEX, the European Apparel and Textile Confederation, has warned that if these prices continue to grow, businesses would be forced to shut down.

Though EURATEX supports the EU's actions in the Ukraine-Russian crisis, it requests that the European Union and its members compensate for the situation by supporting their industry.

"Companies need access to energy at acceptable rates," adds EURATEX, "whether through subsidies, the removal of environmental taxes or VAT from bills, or price restrictions."

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According to EURATEX, the energy crisis that began at the end of last year has gotten worse in the previous week. According to a report by Reuters, benchmark European gas prices at the TTF hub in the Netherlands increased by 330 percent last year, while benchmark German and French power contracts more than quadrupled.

According to EURATEX, the textile and garment sector is in an unusual scenario as a result of the price increase, with several businesses considering closing down production owing to rising energy prices.

"The transition to renewable and cleaner energy sources must be accelerated to ensure decreased reliance."

However, it is a lengthy procedure that will not be completed in the future months.

"As a result, Europe must examine the alternatives available to manage such market shocks as soon as possible," EURATEX says.

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CREDITS: euratex.eu & Apparel Resources.