🇩🇪📉 High Energy Prices Push German Energy Firms to Consider Relocation Abroad

High energy prices and a lack of reliable energy supplies are compelling many German companies to consider relocating abroad. A significant number of firms have already started moving parts of their operations to other countries. This trend is particularly strong among companies in energy-intensive sectors such as mechanical engineering, industrial goods, and automotive manufacturing.
According to a Deloitte report, about two-thirds of German companies have relocated some operations due to high energy costs and inflation. The survey also indicates that companies are shifting both low-skilled and high-skilled production processes to countries with more favorable energy prices (Brussels Signal). Additionally, the Association of German Chambers of Industry and Commerce (DIHK) noted that investing abroad has become more attractive for many firms due to the high cost structures in Germany (Xinhua).
Prominent examples include BASF, a chemical giant, which has announced a permanent downsizing of its European operations to escape high energy costs. This move reflects a broader concern that continued high energy prices could lead to a significant deindustrialization of Germany's heavy industry, which is vital to its export-led economy (POLITICO).
Despite the short-term measures like building up gas reserves and government aid, the long-term outlook remains challenging. Economists warn that if energy prices do not stabilize, more companies may follow suit, relocating operations to ensure their survival (POLITICO).