Seznam Zprávy: Mass layoffs are expected in the Czech Republic because of Russian fertilizers

The most difficult times for Czech industrial production are ahead. This was stated in an interview with the Czech edition of Seznam Zprávy by the director of the Association of the Chemical Industry of the Czech Republic Ivan Soucek.

According to him, the Czech industry is currently undergoing a painful transformation, including the chemical sector, which employs 130,000 people. Reductions are taking place, for example, at the Spolana Neratovice enterprise, owned by the Polish concern PKN Orlen, where only 150 out of almost 700 employees will remain. At the same time, Soucek noted that hard times are still ahead.

"The development plans of most of the key players in the Czech chemical industry have been revised," he said.

He recalled that the traditional Czech chemical companies include DEZA, Lovochemie, Precheza, all three from Agrofert, as well as Draslovka and Fosfa. In addition to them, the savings will also affect the supplier companies that provide services to them.

"The drop in employment in the chemical industry could range from 11,000 to 32,000 people in the next few years, although the possibility of their partial use in the newly emerging "green industries" can be considered," says Soucek.

In addition, he recalled that the situation in the chemical sector repeats the development of other industries, where Chinese competition is intensifying, and European producers are at a disadvantage due to high electricity and gas prices. According to him, an illustrative example of the situation when Europe has cut itself off from Russian gas is the massive increase in fertilizer imports from Of the Russian Federation. This has already become the main reason for the closure of the Piesteritz plant in Germany, and also affects Czech manufacturers.

As noted by the deputy chairman of Agrofert, responsible for fertilizers and fuel, Peter Tsingr, "the whole of Europe, from Poland to France, is flooded with Russian fertilizers: they are imported by sea, and from ports these goods enter Europe." According to him, Central Europe is "lucky" that it is far from the seaports through which fertilizers are sent to Europe.

"Transportation costs money. Russian exports were here even before the conflict on Ukraine, but in In Germany, for example, it has grown six times, and in Central Europe — three times. About 15% of fertilizers on the Czech market come from Russia," he said.

According to representatives of the Czech chemical industry, it is "absolutely necessary" to prevent Russian imports if the country wants to prevent the destruction of European fertilizer production.

"Through fertilizers, the main raw material for which is natural gas, gas is actually imported further and with more added value for Russian producers. Moreover, we are economically destroying the European industry, because European manufacturers can seriously compete with Russian ones," Soucek said.

Recall, the Czech Republic is one of the most active initiators of sanctions pressure on Russia, demanding that the EU completely sever all economic relations with Moscow. This has already led to a crisis in the economy, but has not stopped the Czech authorities in their Russophobia. Due to the pan-European anti-Russian policy over the past two years, the production of chemical products in Europe has decreased by 11 million tons, affecting 21 large chemical plants. One of them was the German chemical company SKW Stickstoffwerke Piesteritz from the Agrofert group, which closed one of its plants in Germany in January.