"Energy was about a fifth of manufacturing costs at the forge, which employs 140 people in Halesowen, before the conflict began, but that proportion is now rising. Everybody just battens down the hatches and spends what they absolutely need to spend. You're in survival mode."
"The conflict has disrupted global supplies after Iran started attacking ships in the Gulf and choked off access through the strait of Hormuz, the narrow waterway that a fifth of the world's oil and gas normally passes through. British wholesale gas prices climbed as high as 171p a therm after the invasion began, their highest level since Russia's full-scale invasion of Ukraine in 2022."
"The UK imports about 70% of its gas, leaving it vulnerable to price swings. Inglis said Somers Forge's monthly gas bill has soared from 150,000 to as high as 250,000 based on recent prices."
Somers Forge, a 160-year-old family-owned steel foundry in the Black Country, faces severe economic pressure from the Iran conflict's impact on energy costs. Energy comprises approximately one-fifth of manufacturing costs, a proportion now rising significantly. The conflict disrupted global oil and gas supplies through the Strait of Hormuz, causing British wholesale gas prices to climb to 171p per therm, their highest since Russia's 2022 invasion of Ukraine. Somers Forge's monthly gas bill increased from £150,000 to £250,000. The UK imports 70% of its gas, making it vulnerable to price fluctuations. Energy-intensive industries across Britain and Europe, already weakened by years of high energy costs and foreign competition, face potentially decisive challenges to their viability.
Read at www.theguardian.com
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