Shares in German Industrial Companies Climb on Gas Price-Cap Plan
October 10 2022 - 10:05AM
Dow Jones News
By Ed Frankl and Pierre Bertrand
Shares in German energy-intensive industrial firms jumped Monday
after a commission chosen by the country's government proposed
billions of euros in targeted measures to cap gas costs.
At 1425 GMT, chemical companies BASF traded 6.1% higher,
Covestro climbed 8.9%, Lanxess was up 5.8%, Evonik rose 5.7%, and
Wacker Chemie was up 5.2%.
Meanwhile, steelmaker Thyssenkrupp rose 6%, and
construction-materials manufacturer HeidelbergCement was up
6.5%.
Under the proposals, larger industrial companies would from
January 2023 until spring 2024 pay 7 European cents per kilowatt
hour for the first 70% of their equivalent 2021 gas consumption,
with market rates being paid above that.
The German government said the plans drawn up by the commission
were a good basis and said it would examine the measures
quickly.
The proposals, including separate help for households and
smaller businesses, would cost around 96 billion euros ($93.5
billion), according to commission member Michael Vassiliadis,
forming part of a EUR200 billion package from the German government
to help consumers and industry deal with soaring gas prices.
Andrea Thomas contributed to this article.
Write to Ed Frankl at edward.frankl@dowjones.com and Pierre
Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
October 10, 2022 10:50 ET (14:50 GMT)
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