Due to excessive electricity costs, French glass maker Duralex temporarily halted operations for five months.
“Our yearly bill for gas and electricity rose from 3 to 13 million euros, or 46% of our sales volume.” Adding: “The price of energy often accounts for 5% to 7% of our total sales. The proportion is currently around 40%.”
According to the business, its annual energy bill climbed from 3 million euros in 2017 to 12 million euros in 2018.
And Lacona added: “Duralx considers that ceasing production is the only answer to sustain the survival of the company. Since 2021, the price of electricity has increased by 22 percent, while the price of gas has increased by 18 percent.
Media reports state that 250 employees at the French company will be affected by this choice, who will face partial unemployment benefits and compensation equal to 95% of their earnings.
According to Lakuna, the company has a sufficient amount of high-quality merchandise, and it is certain that it can conduct business normally throughout this time while still providing for its clients. As a result, the site will continue to function, with full activity starting up again in 2019.
The French role is suspended for 5 months .. What’s the cause?
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