Oil Price reported that the world’s biggest chemicals company, Germany-based BASF, considerably decreased production in the third quarter. The company will seek cost-saving measures due to the high energy prices, BASF chief executive Martin Brudermüller said. “Uncertainties due to the enormous number of regulations planned by the E.U. are weighing on the chemical industry,” Brudermüller pinpointed. He also stressed that the firm would stick to a cost-savings program to secure medium- and long-term competitiveness in Germany and Europe. The damage BASF suffered is a warning sign of European industry losing competitiveness in the long term due to the surge in energy costs. Notably, the energy-intensive chemical industry usually suffers the most from energy crises.
According to Oil Price analysts, the energy crisis is severely hitting the world economy. European industries slashed their production capacities. Meanwhile, some companies are shutting down or relocating production. Europe risks losing its competitiveness in the global markets.
Earlier, The Financial Times reported that Europe slipped into an industrial recession due to Russian gas supply cuts. The publication noted that the lack of energy had triggered a decline in production, primarily in the chemical industry.
