Saxony's foundries sound the alarm over energy costs

Saxony's foundry industry is under pressure due to high energy costs, regulation and growing competition from imports. "Saxony is the strongest foundry location in eastern Germany - and we want to keep it that way," said State Secretary for Economic Affairs Sebastian Scheel at an industry meeting at the Schmees Cast stainless steel foundry in Pirna.

The industry is indispensable for the value creation of many key industries in Europe. The companies depend on reliable access to cheap energy and internationally competitive location conditions, said Scheel.

Around 20 representatives from companies and associations came together in Pirna to discuss the situation in the industry. "The foundry industry is currently facing enormous challenges," said Martin Theuringer, Managing Director of the Federal Association of the German Foundry Industry.

The companies need to benefit across the board from a competitive industrial electricity price, for example. "Germany and Saxony need an efficient foundry industry in order to remain industrially competitive."

In a position paper, the industry calls for an effective industrial electricity price and protection against carbon leakage, among other things. This refers to the relocation of CO2-intensive production to countries that have lower or no CO2 pricing. European requirements should be implemented without national tightening.

With 22 companies and around 6,300 employees generating an annual turnover of around one billion euros, the foundry industry is considered an important economic factor in Bavaria.