At Der Spiegel, "German Industry Prepares for Worst-Case Scenario":
German industry and the government in Berlin are ill-prepared for a possible halt in supplies of natural gas from Russia. A new emergency plan is being developed to prevent an economic meltdown if deliveries cease. You can find something from Hinrich Mählmann just about everywhere you look in Germany. His company, the Otto Fuchs Group, founded in 1910, literally delivers the things that make the country move. They include wheels and coupling systems for railroads, engine components for the aviation industry and even battery housings for electric cars. Mählmann also sells thermally insulated windows and doors through its subsidiary Schüco. The supplier has revenues of just under 3 billion euros annually and employs 10,000 people. If the family business in the small town of Meinerzhagen in the western German state of North-Rhine Westphalia was suddenly no longer able to manufacture its goods, the German economy would have a problem. Without Mählmann’s upstream products, manufacturing in entire industries would be at risk – from car factories to construction. Until now, such a horror scenario seemed unthinkable. To supply what German industry so urgently needs, the company operates aluminum presses "as heavy as the Eiffel Tower," as Mählmann says, plus large furnaces and smelters. The plants consume vast quantities of natural gas, an energy source that the group, like thousands of other companies across Germany, obtains to a large extent from Russia. Currently, Mählmann is busy preparing for the possibility of the day when natural gas from Russia may no longer flow. It would be a "catastrophe," says the businessman. Turning off a gas-powered furnace for several hours a day is virtually impossible, he says. Doing so would cool them down, and bringing it back up to temperature would consume a disproportionate amount of time and energy. And replacing gas with electric power is out of the question: It would make no sense environmentally or economically. Relocating the machines would also be impossible due to their sheer size and the cost. "The plant would have to shut down," says Mählmann. He pleads for gas imports not to be frozen completely and for the energy source to instead be rationed if necessary to at least "keep everything running on the back burner." Germany on the back burner, a country in emergency mode. These are the kinds of considerations Germany is making right now across all sectors, industries and trades. What if Russia turns off the gas? Or the European Union bows to the growing pressure and imposes an import ban itself? Who would then get the much-coveted raw material? Which rules would fall into place? As of today, it seems certain that private consumers and their heating systems would be given the priority. Drug manufacturers and hospitals as well as public infrastructure are also at the top of the list. After that, things get tricky. Should those industries be supplied with gas, at least in part, whose products are urgently needed by others for further processing? Or is it really a matter of only the most urgent needs, a war economy in which it is the security of supply counts and no longer the continuity of industry? Germany is extremely ill-prepared for this worst-case scenario. A "Gas Emergency Plan for the Republic of Germany" has been in place since September 2019. But it is based on a fundamental miscalculation: In the very first pages, it states that the natural gas supply situation in Germany is "highly secure and reliable." And that the likelihood of a massive supply crisis is "very low." ...