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Report for Germany

The situation for recyclers could not be any more precarious than it is at present. Owing to high energy costs and to the decline or even complete absence of orders, money has become tight and companies are having to choose between either continuing to operate with under-utilized capacity or shutting down machines and putting their employees on short-time working.

If the German federal government does nothing to counteract the rising costs of gas and, even more importantly, electricity, then the result will be short-time working at best, and potentially lay-offs and even insolvencies. And all this could happen faster than you might think.

The rising energy costs could be passed on to customers, but only to a certain extent. In addition, falling prices for new goods and extremely cheap spot material are causing serious problems when it comes to selling expensively-produced recyclates.

In the long term, it is unviable to continue production if operating costs are constantly rising and proper sales cannot be assured on the market. Politicians in Germany and the rest of Europe must intervene as quickly as possible, otherwise many medium-sized companies that support their economies will not survive into 2023 and thousands of people will have to be made redundant.