Three Ukrainian glass factories stopped production, the rest went into a technological downtime so as not to stop the furnaces. This is stated in message on the website of the profile organization “Glass of Ukraine”.
The reason for the shutdown of enterprises was too high gas prices, which account for up to 50 percent of the cost of glass products. Because of this, the cost of goods is critically growing, and they remain unclaimed. An additional blow to the industry was the import of glass products from countries where energy prices are lower, sometimes ten times lower.
The organization warned that glass factories are becoming unprofitable, in fact they are at the stage of bankruptcy and complete closure. 12,000 people are under the threat of losing their jobs, and related industries will also suffer.
In this regard, industry representatives are asking the government to develop and implement a targeted support program, including through the provision of anti-crisis loans, and create a trust fund to compensate gas prices for glass manufacturers. Other options include allowing glass factories to participate in natural gas auctions at preferential prices and using non-tariff measures to make it harder to import glass products through anti-dumping duties.
A month ago, the Association of the Baking Industry of Ukraine warned about problems with the supply of bread. High gas prices were also cited as a reason. Last week, the All-Ukrainian Association of Bakers, in an appeal to President Volodymyr Zelensky, called the situation critical, not ruling out that companies would soon have to stop work.
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