Rising Global Tensions Drive Up Production Costs at Drewsen Spezialpapiere

The ongoing geopolitical tensions linked to the Iran conflict are significantly impacting industrial production costs, with Drewsen Spezialpapiere, one of Germany’s oldest paper manufacturers, facing sharp increases in expenses.

The Lachendorf-based company is experiencing rising costs primarily due to surging energy prices and pulp (raw material) costs, both of which are heavily influenced by global market instability.

As an energy-intensive business, Drewsen is particularly vulnerable to fluctuations in fuel and energy markets. The company has indicated that these developments are already affecting its operations and will likely have consequences for customers worldwide through higher product prices.

To counter these challenges and reduce dependence on fossil fuels, Drewsen is planning strategic investments, including the development of a biomass power plant, aimed at improving energy independence and long-term cost stability.

The situation highlights how international conflicts can directly impact regional industries, especially those reliant on energy and global supply chains.