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Energy costs concern local plants

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  • Allison Miles •
  • Originally published May 28, 2008 at 10:24 p.m., updated May 28, 2008 at 10:24 p.m.

Between the first quarter of 2007 and the first quarter of 2008, the Dow corporation saw a 42 percent increase in energy costs, said Trish Ritthaler, public affairs manager for the company’s Seadrift office.

The corporation pays about $32 billion a year for energy, she said, which makes it more difficult for Dow to remain competitive in both the national and global markets.

“We have been aware of this for several years and making many efforts to improve our efficiency both from a cost control perspective, increasing energy efficiency ... ,” she said. “But at a certain point, costs just have gotten to the point where we have to pass it along to our customers.”

Other local chemical plants said they’ve felt the squeeze, too.

Employees at Invista, for instance, are paying special attention to managing the business and serving customers, company spokeswoman Amy Hodges said.

Energy costs make up a significant part of Alcoa’s operating costs in Port Comfort, the company’s community relations specialist Laurel Cahill said.

Alcoa relies on its employees to conserve energy, she said, and that can range from running the company’s heavy machinery more efficiently to turning off lights when a room isn’t in use.

“It’s the employees who know the process best,” she said.

Dow also does what it can to conserve energy on both the small and large scales, Ritthaler said.

It recently partnered with an oil company from Kuwait, she noted, which will help Dow gain access to feedstocks more easily and cost effectively.

“This is really a very serious issue for the U.S. manufacturing sector,” Ritthaler said. “I think you’re going to see a lot more businesses having to increase their prices simply because the cost of energy and feedstock is increasing.”

Allison Miles is a reporter for the Advocate. Contact her at 361-580-6511 or amiles@vicad.com, or comment on this story at www.VictoriaAdvocate.com.



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