ENCIRC chief, Adrian Curry, has estimated that the company’s energy costs could increase by £60 million per year.
As a result of increasing costs, the Fermanagh firm have suffered a sharp rise in the price of natural gas and electricity.
Encirc is one of the biggest glass container makers in Europe, but Curry warned that the increasing costs could have a detrimental impact on the business.
Speaking to BBC Radio 4’s Today programme, Curry said;
“The problem we have is that there seems to be no cap to it and it’s continuing to rise on an almost weekly basis.
“Generally we will have contracts for 12 months at a time, so we’re having to look at what contracts are offering, how we can pass these price increases on and how we can protect our business in that regard.
“Our business is not at risk, per se, but our profitability is being hit hard We would normally spent about £40 million a year in energy,” said the Derrylin company boss, “If we look forward today we’re seeing increases that mean we could be spending up to £100 million on a like-for-like basis.”
Curry added that he hopes the glass sector would receive some support and advice in the future.
“I think without an intervention of some sort I can see a situation where it’s going to be extremely difficult for a lot of companies and it’s going to really affect supply chains going forward.
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