EURATEX calls for strategy to tackle the energy crisis

BTJ Desk Report
EURATEX calls for strategy to tackle the energy crisis

The European textile and fashion in Europe (EURATEX) have called for a single European strategy to tackle this energy crisis.

To safeguard the future of the industry, a revision of the electricity price mechanism is necessary and an EU-wide cap on gas prices at 80€/MWh, they said.

Moreover, special company support needs to be granted to avoid bankruptcy and relocation of textile production outside Europe.

In a media release, EURATEX also said that the gas and electricity prices have reached unprecedented levels in Europe.

Due to severe global competition in the market that characterizes the European textile and clothing industry, these cost increases are impossible to pass on to customers.

This has already led to capacity reductions and production stops. Closures and the shift of production outside Europe are being forecasted should the current situation persist, leading to further de-industrialization of the continent and increased dependency on external suppliers, the media release added.

According to the media report, specific segments like man-made fibres (MMF), synthetic and cellulose-based fibres, industry for instance is an energy-intensive sector and a major consumers of natural gas in the manufacturing of its fibres.

The disappearance of European fibre products would have immediate consequences for the textile industry and for society at large.

The activities of textile dyeing and finishing are also relatively intensive in energy.

Governments should ensure that critical industries, such as textiles and all its segments, are able to ensure gas and electricity contracts towards the end of the year at an affordable price, the media release added.


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