Encirc, which makes glass bottles for the food and drink industry at its plants in Fermanagh and the north-west of England says profitability is being hit hard and it may be forced to look at passing price increases on.
Managing director Adrian Curry told the BBC that the firm typically spends £40m a year on energy, but the sharp rise in gas prices means that could hit £100m this year.
“There seems to be no cap to it and it’s continuing to rise on an almost weekly basis,” Mr Curry said.
“Generally we will have contracts for 12 months at a time, so we’re having to look at what contracts are offering… how we can pass these price increases on and how we can protect our business in that regard.
“Our businesses are not at risk, per se, but our profitability is being hit hard.”
Encirc’s Derrylin plant is one of Northern Ireland’s biggest industrial gas users.
High energy costs have been forcing manufacturers across the UK to warn of higher prices for their goods as they pass on increases to consumers.
Some firms say they may be forced to shut down their factories if the rising cost of gas and electricity makes it uneconomic for them to produce their goods.
Manufacturing NI (MNI) says companies are also seeing sharply rising electricity costs.
MNI said that October sees old contracts expire and new ones come into effect and that some firms have seen “prices doubled and more”.

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Supplies to c-stores in Ireland do not seem to have been too seriously adversely impacted – although there are reports of some niche products like speciality cheeses, being hampered.

One M&S in Dublin had empty shelves, although a spokesperson said it was due to “systems” at the time. She further explained that it was IT related but had no comment on whether Brexit was affecting supplies.

M&S CEO Steve Rowe told the Irish Independent “Tariff free does not feel like tariff free when you read the fine print (of the deal).”

Complexities

On the whole, Irish wholesalers and suppliers have been able to ensure their customers are supplied, without significant disruption. The wider implications of Brexit on the Irish economy seem to be focused on logistics, shipping and the export/import sector of the economy.

Stena Line, the largest Irish Sea operator, has doubled its services on the booming Rosslare-Cherbourg route, temporarily cancelling some sailings to Britain after freight volumes fell 60% in the first half of January.

Irish Ferries has deployed a larger vessel out of Dublin and planned to add more weekly rotations next month, the Port of Cherbourg said. Brittany Ferries also brought forward a planned sailing linking France and Ireland.

As Irish companies learn to navigate their way through the minefield of Brexit implications and requirements, Manufacturing NI has issued new advice which may be helpful to Irish suppliers, exporters and importers.

Moving goods indirectly from Great Britain to Northern Ireland via Ireland

Goods can be moved from Great Britain into Northern Ireland via Ireland under ​Transit​, and the ​Trader Support Service​ is able to support movements these.

If they are not moved under Transit they follow the same procedures as a standard ​export to the European Union​, even if these goods are subsequently moved into Northern Ireland. ​Irish import requirements​ must also be followed. ​Once goods are in Ireland, they can be moved freely into Northern Ireland with no further paperwork.

Moving goods indirectly from Northern Ireland to Great Britain via Ireland

Goods can be moved from Northern Ireland into Great Britain via Ireland under ​Transit​, and the ​Trader Support Service​ is able to support these movements​.

If they are not moved under Transit they follow the same process as standard ​import from the European Union​. ​Irish export requirements, including providing an export declaration must also be followed. There is no requirement for any processes to move goods between Northern Ireland and Ireland.

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