CESCO INTERVIEW: Germany's energy crunch will cramp domestic investment – Aurubis ceo

Energy-intensive manufacturers are starting to make investments outside Germany because of its rising energy costs, a trend that will include the copper industry, the ceo of German copper producer Aurubis said.

Bernd Drouven said that the closure of Germany’s nuclear plants and high but unrealistic targets in renewables mean companies are taking their planned-growth investments to other countries. “Industry is not likely to move out of Germany – what will happen will be a reallocation of capital, and that is already happening,” he said, noting that in the chemicals industry, large companies are not investing in Germany any more. Bernd Drouven, ceo of Aurubis “Job cuts due to closures are not easy, so it’s far easier for companies to maintain operations in Germany at existing levels, but see their expansions and future growth elsewhere,” he told Metal Bulletin in an interview. The USA is an attractive alternative location for the chemicals industry, Drouven said. “For the copper industry, I think investing in areas closer to mines makes more sense,” he added. In Germany, the target is to achieve a 20% reduction in...

Published

Andrea Hotter

April 15, 2015

15:28 GMT

Santiago, Chile