Energy shortages and Covid-19

Energy shortages and Covid-19 photo

Dear partners,
We are coming to you at the beginning of something big. No one can be certain about the future, but what we´ve endured in last weeks and what is yet to come is something that has not been seen in our history.

At the beginning of 2021 we feared about the increasing price of CO2 emission allowances which has doubled from 2020. Then we follow a very narrow passage through the Covid-19 time which was very uncertain for everyone. Then with the restart of the economy we struggled with shortages of packaging materials which we have not overcome yet and there is another sword of Damocles hanging over everybody's head.

We are sure that the situation on the energy market is nothing new to you. From the end of summer, the prices of both electricity and gas have increased to levels which are beyond any reason. Price of all raw materials for the glass production increased by 100-400 %. Our scheduled investments in technology and company upgrades have been increased by the markup of construction business. The raw material for cast iron and stainless steel for our moulds has risen at least three times. The availability of the all materials is also very speculative and uncertain. The current inflation in our country overstepped 5 % in September and is expected to break 7 % with the end of the year.

Now we are facing crucial decisions that will reflect the market price and availability of energy commodities on the market. Prices of energies are still very unclear and we stand at beginning of a new wave of Covid-19.

In the light of such facts, we are preparing and activating risk assessments in the company. We can now only speculate if we would be able to continue production or if we will be forced to partially or fully shut down the production. All scenarios are being evaluated and we will keep you updated on this matter.

Please feel free to get in touch with us in order to explain details and to discuss necessary steps.

We have also commenced a brief newsletter to keep you updated on latest news from Sklárny Moravia.