(Agence France-Presse, Kleittau, Germany, 8th) German Heinz Glass (Heinz-Glas) is one of the world’s largest manufacturers of perfume glass bottles. It has experienced many crises in the past 400 years. World War II and the oil crisis of the 1970s.
However, the current energy emergency in Germany has hit the core lifeline of Heinz Glass.
“We are in a special situation,” said Murat Agac, deputy chief executive of Heinz Glass, a family-owned company founded in 1622.
“If the gas supply stops … then the German glass industry is likely to disappear,” he told AFP.
To make glass, sand is heated up to 1600 degrees Celsius, and natural gas is the most commonly used energy source. Until recently, large volumes of Russian natural gas flowed through pipelines to Germany to keep production costs low, and annual revenue for Heinz could be around 300 million euros (9.217 billion Taiwan dollars).
With competitive prices, exports account for 80 percent of glass manufacturers’ total output. But it is doubtful that this economic model will still work after Russia’s invasion of Ukraine.
Moscow has cut gas supplies to Germany by 80 percent, in what is believed to be an attempt to undermine the resolve of the entire largest economy in Europe to support Ukraine.
Not only Heinz Glass, but most of Germany’s industries are in trouble due to the crunch in natural gas supplies. The German government has warned that Russia’s gas supply could be completely cut off, and many companies are making contingency plans. The crisis is reaching its peak as winter approaches.
Chemical giant BASF is looking into replacing natural gas with fuel oil at its second-largest plant in Germany. Henkel, which specializes in adhesives and sealants, is considering whether employees can work from home.
But for now, Heinz Glass management is still optimistic that it can survive the storm.
Ajak said that since 1622, “there have been enough crises… In the 20th century alone, there were World War I, World War II, the oil crisis of the 1970s, and many more critical situations. We all stand by It’s over,” he said, “and we will also have a way to overcome this crisis.”