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High Gas Prices Maybe Devastating - Rockware Glass
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Rockware Glass product story
Edited by the Manufacturingtalk editorial team
Dec 8, 2005
Dramatic increases in the price of gas supplied to industry are potentially devastating and could erode the viability of glass making, according to Rockware Glass.
Dramatic increases in the price of gas supplied to industry are potentially devastating and could erode the viability of glass making, according to Rockware Glass.
Rockware Glass, based in West Yorkshire (UK), is feeling the pressure of hyper-inflation style gas prices rising four fold in a two-week period from around GBP0.30 a therm GBP1.40.
Currently, prices have fallen back to around GBP1.00, but Rockware said that is small consolation as it is a high users of gas, which is needed to melt the glass in the company's furnaces to produce bottles and jars.
Keith Swindell, financial controller at Rockware Glass, commented that gas prices at current levels are unsustainable at the company's busiest time of the year for glass production leading up to the Christmas period.
He said: "If gas prices continue to stay at this level or even rise again, this will obviously have a significant impact on our business.
Malcolm Wicks MP, Energy Minister stated last week that the National Grid say it is awash with gas and the current prices offered to industry are totally irrational." Swindell continued: "We need far greater stability in the wholesale gas market at lower cost levels in order to return to normal trading conditions within the industry.".
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