This is no small economic affair!
Indeed… “Energy prices are pushing the German chemical giant BASF to relocate”.
Faced with soaring energy costs, the German chemical giant does not rule out relocating certain “particularly energy-intensive” productions. BASF finds it difficult for European chemicals to be competitive in the context of soaring gas prices. Despite a plan that should allow it to achieve 1 billion euros in savings in 2023 and 2024 – in particular through job cuts – only changes in the way of production can have real impacts on finances according to its CEO.
BASF is the largest gas consumer in Germany with 47 terawatt hours consumed each year.
Martin Brudermüller, the boss of BASF, warned that “the major part of the savings unfortunately comes from production stoppages”.
More serious for the great head of BASF “we think that in the long term, they will be about three times higher in Europe than in the United States, if only because of the higher costs of LNG (natural gas liquefied, editor’s note)”.
This means that to remain competitive the German giant will simply have to produce in countries where energy is cheaper.
The BASF group will therefore produce in the United States.
The trade balance will continue to collapse.
The euro will follow against the dollar.
Europe is a bitter failure.
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Source LaTribune.fr here