THEincrease in the price of gas, more and more at the origin of the dear energy, throws the most important Italian paper group into crisis. There Pro-Management, owner of paper mills with plants in 7 regions that manage 1 million tons of paper a year, has announced the suspension of activities due to the increase in gas prices. Russia's main business now costs ten times more than it did a year ago. The alarms of the industrialists of recent days, also taken from statements by Minister Roberto Cingolani, have among the first victims the paper group engaged in the collection and recycling of paper throughout Italy which has decided to suspend production of all 9 continuous paper processing machines with repercussions on the entire supply chain.
Expensive energy and transportation cost
The still growing raw material prices – says the company – and the increase in the cost of transport prevent it from keep the cost of production within limits able to guarantee the overall financial balance. The Zago family, owner of the plants, let it be known that they regretted the decision and that they are looking for alternative solutions to resume work quickly. "We sincerely hope to be able to resume production as soon as conditions allow and we ask the institutions to intervene to safeguard entire production sectors, put out of the market by the uncontrolled increase in costs", he adds Francesco Zago, CEO of Pro-Management
Management imbalance
The paper is sold at around 680 euros per ton and currently requires approx 750 euros of energy costs alone. The imbalance for expensive energy in the accounts is evident. The equipment used is at the forefront in Europe, they have required major investments, but they need gas to function. "It is a moment of extraordinary and dramatic criticality that we want to overcome as soon as possible - explains the company - We are closely monitoring the situation of the war and we are deeply saddened for the Ukrainian people, hoping for an immediate solution to the armed conflict".
The price of gas has tripled in one week and government plans take this into account. But it's not easy at all reduce the "corridor" of Russian gas. Even the possibilities of increasing imports from Algeria or increasing the flow of TAP are not immediate. We are preparing for complicated weeks due to a sudden high energy price and the stoppage of Pro-Gest is the clear sign of the difficulty of Italian companies in coming to terms with the aggression against Ukraine.
