Cerrad, a Polish manufacturer of ceramic tiles, is limiting production due to high gas prices

Cerrad, a Polish manufacturer of ceramic tiles, is suspending three out of seven production lines, according to TVN24. The reason is record gas prices. Cerrad is one of the largest producers of ceramic tiles in Europe. In connection with the decision to limit production, 350 workers are to lose their jobs.

The company from Starachowice in the Świętokrzyskie Voivodeship is a leading manufacturer of ceramic tiles in Europe. Now, however, Cerrad is forced to cut production.

High gas prices

Within a dozen or so months, the gas fees paid by the company jumped by 1500 percent. – from PLN 4 million in January 2021 to PLN 60 million now.

Gas is supplied to the company by PGNiG. According to TVN24 reporter Artur Molęda, before the energy crisis, the invoice payment deadline was 90 days, recently it has been reduced to 30 days.

“The shut down production lines are group layoffs. The company is forced to lay off 350 out of 1,400 employees. And this is probably not the end” – informed Molęda.

The company was also forced to raise the prices of some products by 100%.

About company

Cerrad is a Polish company that started operating in 1994. Currently, it produces 20 million m2 of tiles annually. It is one of the leading manufacturers of ceramic, stoneware and clinker cladding in Europe. According to the information on the Cerradu website, the company is present in 50 countries.

The headquarters of the Cerrad Group is located in Starachowice in the Świętokrzyskie Province. There are production plants in the city.

Grupa Azoty and Anwil suspend production

The Grupa Azoty Group announced this week that the plant for the production of nitrogen fertilizers, caprolactam and polyamide 6 has stopped operating. In turn, the plants in Puławy have reduced the production of ammonia to about 10 percent. production capacity and withheld some production in the plastics and agro segments.

Zakłady Azotowe Kędzierzyn has reduced the operation of the installation in the fertilizer production unit to a minimum. The production of nitrogen fertilizers was also temporarily suspended by Anwil, a company from the PKN Orlen capital group. The companies explain the decision with unprecedented growth natural gas prices.

Main photo source: Shutterstock

Leave a Comment

Your email address will not be published. Required fields are marked *