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Cersaie, Ceramics Exhibition, President Savorani's cry of alarm: "Expensive energy is strangling us"

INTERVIEW WITH GIOVANNI SAVORANI, President of Confindustria Ceramica, on the occasion of the opening of Cersaie on 26 September in Bologna: “Many companies on the verge of collapse: today the cost of energy exceeds the total costs of 2019. Here's what we ask the new Government"

Cersaie, Ceramics Exhibition, President Savorani's cry of alarm: "Expensive energy is strangling us"

- tile industry, starting from those of Sassuolo, they said it in all ways and in all contexts: energy costs they are strangling us, let's do something or the crisis could overwhelm one of the most flourishing realities of Made in Italy and which has made the ecological sustainability of production its mantra and its pride. The costs of gas and electricity have exploded and risk bringing a sector that matters to its knees 131 companies, For a turnover of 6,2 billion e almost 20 thousand workers. This sector, only for energy, today spends what it spent for the entire production in 2019. And Covid was involved, with all that follows in terms of critical issues. The first half of 2022 was good for sales, but the future may look bleak due to the gas price explosion.

The cry of alarm can be repeated on Monday, in Bologna, by the president of Confindustria ceramics Giovanni Savorani to the Minister of the Environment Roberto Cingolani, on the occasion of the inaugural conference of the 39th edition of Cersaie, International Exhibition of Ceramic Tile and Bathroom Furnishings.

By a twist of fate, however, Monday will also be the "day after" of the elections, the day on which the outcome of the policies will be known, as a result of which the interlocutors will change. Whoever goes to government, however, will face unchanged the problem of who has to make ends meet to continue producing and providing jobs. And the answers will have to come quickly. Here is Savorani's point of view and the hopes that companies place in the Bologna appointment, which will be attended by 624 exhibitors, 38% of which are foreign, coming from 26 countries.

President Savorani, can you clarify the situation of those who work in your sector?

«I think the real dimension of the energy problem and the urgency of the necessary responses have not yet been perceived. For the ceramic sector, today the cost of energy exceeds the total industrial cost we had in 2019. Is that clear? The recent measures included in the Decree Aid Ter they go in the right direction, but they are far from solving the problem. Today, producing a square meter of tiles costs 9 euros for gas alone. If we think that the increase of one euro must be multiplied by each of the 70 billion cubic meters of methane consumed in Italy each year, we realize that only the methane problem has the dimension of two financial laws. This surge has mainly affected Europe. Faced with this, I believe that gas trading on the TTF in Amsterdam should be suspended, as happens on the Stock Exchange when a stock rises or falls too much».

If the situation does not change what will happen to you?

«We risk being left out of all markets and the urgency concerns today, not tomorrow. Many companies are already suffering now. They are late or have been slow to reopen after the summer break and I fear that before the end of the year there may be a worsening of the situation. If we have to raise prices to defend ourselves, then we have to expect sales to drop. Furthermore, rising prices create inflation and make us less competitive. When competitiveness is lost, consequently, orders on international markets will be lost, first of all those not subject to the Emission Trading System regime like ours».

In this context, is sustainability still a value for you?

«Of course, we are convinced that sustainability is a strategic factor in the sector on international competitiveness, for which we have made and continue to make significant investments and which places us in a leadership position compared to our international competitors. We consume energy for 30 minutes to create a product that has a life of over 50 years. Italian ceramics is a leader in the energy transition because it has always invested in respect for the environment, but the conditions must also be created to maintain our competitiveness on global markets. We do not want an ecological transition that causes job losses. So we don't want to suspend the energy transition or the ecological transition, but we do want it to change. We have already set in motion a whole series of investments and research to carry on this process, but for every sustainability project, be it health, ecological or social, there must be economic sustainability upstream, otherwise nothing can be done . We also have to put ourselves in the shoes of a buyer who has to pay 20 euros per square meter for tiles produced at these energy costs and with respect for the environment, when he can perhaps spend half as much for a non-European product, which comes from a company that pays energy is much less and there are no pollution problems».

To face the increase in costs are you thinking of resorting to layoffs?

«I don't make layoff forecasts. The employees of the Italian ceramics are 19.500, with an associated industry that has more or less the same number of people. We export 85% of what we produce. Let's see if with this Cersaie we can maintain a sufficient flow of orders. The urgency lies in safeguarding families and businesses, two things that go hand in hand. If people end up in layoffs, with reduced salaries, the problems of families explode".

What do you suggest?

"In addition to a general moratorium on mortgages, both for families and for businesses, we are asking for greater extraction of national gas, which will allow us to have methane at a more reasonable price compatible with the market".

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