Navigator is considering cutting investment in Portugal – Industry

Rising electricity prices have prompted Navigator to consider reducing investment in Portugal. pulp and paper company Admitted to ECO The energy crisis, which has led to higher prices in the Iberian wholesale market, is affecting business and making it less competitive in the global market.

“We are already feeling an increase in costs that will naturally translate into a lower competitiveness of our value proposition in the international market. We have less room to invest and grow, not only because we invest our money in these additional costs, but investments in Portugal are also less attractive,” the company source admitted. the post.

Navigator adds that the rise in the price of the light will inevitably reflect on the final price of the product, and end up affecting the consumer. This month, the company – listed on the Lisbon Stock Exchange and the third largest Portuguese exporter in 2020 – has already raised paper prices in Europe by as much as 6%.Electricity prices have seen successive increases in recent months due to several factors, among them the rising costs of carbon licenses and the price of natural gas, which has also peaked, due to rising demand worldwide.

The price also reflects the scarcity of wind to produce wind energy, which tends to be cheaper. This is offset ultimately by an increase in hydropower production and in combined-cycle power plants, which rely strictly on natural gas.

Experts estimate that prices on the Iberian market will remain high until the end of 2021.