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European Industry Faces Shrink or Shut Decisions on Energy Pain

  • Chemical, metal producers warn gas prices will hurt profits
  • Uncertainty about sanctions, gas through Ukraine dims outlook

Europe’s biggest industrial firms have been banking on spring to bring down soaring energy costs. Those hopes faded this week as Russian tanks rolled into Ukraine.

Smelters and chemical factories across Europe were already struggling before the invasion sparked another jump in gas and electricity prices. Now, a growing list of companies including Europe’s biggest chemicals maker BASF SE are warning the energy crisis will keep hacking away at their bottom lines for the foreseeable future.