Skyrocketing energy prices force many Dutch factories to shut down: Report

Skyrocketing energy prices have forced many Dutch factories to shut down, local media reported on Saturday.

Ever-increasing energy prices hit hard particularly the energy-intensive sectors such as the metal industry, according to the NU news website.

Speaking to the website, economists warned that companies in the chemical, paper, and food industries are also likely to be affected by the soaring energy prices and thus might have to scale down or completely shut down their operations.

Lize Nauta of Rabobank noted that the companies will be less successful in the near future and pass the increasing energy cost to the customers who themselves will be less willing to pay more for the same product.

“We expect energy prices to remain high for a long time to come. It is expected that some companies will therefore also look at other ways of producing. For example, by using green electricity instead of gas, if possible," she said.

Albert Jan Swart of the ABN AMBRO said that there is no alternative for some goods such as basic foodstuffs which have to be bought no matter how much expensive they could be.