A Saxony Entrepreneur Faces Challenges Going Green
A Saxon businessperson aims to adopt eco-friendlier practices, yet encounters significant hurdles in the process.
Max Jankowsky, a 32-year-old entrepreneur based in the Ore Mountains, runs the Loessnitz foundry as a family business in its third generation. He's eager to make his company eco-friendly, but the journey's not as smooth as he thought.
By Pia Lucchesi, a glance into an arduous quest.
Loessnitz - Driven by conviction and a love for his homeland, Max Jankowsky embraces sustainability in his business. He's already dumped five million euros into air filters, used waste heat, and backed a run-of-river power plant in India—all without any mandates.
The family man, also serving as the ambassador of the Ore Mountains, gleefully shows us around the plant. Our tour ends at an empty courtyard spot—the future site of a new, emission-free production building.
"This space would accommodate two melting furnaces, operated by electricity, if the network offers sufficient green energy," he explains.
Meters, Lawsuits, and Bottlenecks
Jankowsky has been grappling with the switch to climate-friendly production for years. A comprehensive transformation plan (costing 75,000 euros alone) is in place, estimating a ten-million-euro overhaul.
However, state subsidies for Loessnitz's green transformation, originally earmarked in the budget, were denied—the project deemed not innovative enough. Without funding, Jankowsky's dreams are on hold. The government's decision leaves him without the reserves or backing from banks needed to proceed.
Jankowsky's hunting for solutions, meeting politicians weekly and appearing on camera to discuss his struggles. Time's running out—he estimates at least four years for the new facilities to be operational due to approval periods and delivery times.
Utility Companies' Warnings and Escalating CO2 Levies
As Jankowsky waits, CO2 levies will steadily rise, coupled with increasing energy and raw material prices. The connection to the local power network, which would cost 1.5 million euros alone, has been abandoned due to Jankowsky's inability to gather the required funds within a short timeframe.
Ore Mountains: A Struggling Middle Class
"The CO2 levy will further erode our profits. Loans will become more expensive and difficult for us," laments Jankowsky. A survey of the German industry reveals existential problems for the middle class. Entrepreneurs are increasingly overwhelmed by the energy exchange gambling, trading of CO2 certificates, and excessive bureaucracy—challenges not shared by competition abroad.
A Gripe and a Push for Change
Jankowsky's gaze strays from the foundry, fixated on the power cable nearby. "Germany has become a complex maze. Criticism of climate and industrial policy is quickly met with labels like opponent or greedy entrepreneur. But we're just fighting for Germany and its jobs," he maintains.
Loessnitz Foundry: Competitive Yet Vulnerable
The Loessnitz foundry is a supplier for the automotive press tool industry, creating cast parts that contribute to the manufacturing of cars from brands like Porsche, Aston Martin, Audi, Mercedes, BMW, and VW. The foundry generates around 22 million euros in sales each year with a tonnage of 12,000 tons of cast iron annually.
The foundry stands out due to its own model-making, producing polystyrene models for the full mold casting process. However, international competitors, particularly Turkey and China, are mastering energy-intensive production under cheaper electricity costs and often without stringent environmental regulations.
Photo: Image montage: Kristin Schmidt, Sven Gleisberg
Additional Topics:
- Technical malfunction causes railway line disruption in the Ore Mountains
- Czech Republic plans new nuclear power plant, just a few kilometers from Saxony
- Utilities caution against fraudsters in the Ore Mountains
Interesting Tidbits:
- Green Transformation in Energy-Intensive Industries: Green transformation typically involves energy efficiency efforts, switching over to renewable energy, and implementing circular economy practices. In the case of foundries, this could involve measures like implementing advanced technologies that reduce energy consumption, transitioning to renewable energy sources, and using recycled materials.
- Funding Opportunities in Germany: In Germany, business owners may seek funding through banks like KfW, the European Union, BAFA (Federal Office for Economic Affairs and Export Control), and the Climate Protection Act (Klimaschutzgesetz). Post-government change initiatives, such as Green Deal packages and enhanced carbon pricing, may also provide additional sources of funding.
- Despite the challenges, Max Jankowsky, the entrepreneur at Loessnitz foundry in the Ore Mountains, continues his pursuit of sustainability in his business.
- Jankowsky's green transformation plan, costing 75,000 euros alone, estimates a total overhaul of 10 million euros, with financing initially promised from the government but later denied.
- The struggles faced by Jankowsky are not unique; the German industry survey reveals existential problems for the middle class due to the complexity of energy exchange, trading of CO2 certificates, and excessive bureaucracy.
- The Loessnitz foundry, a supplier for the automotive press tool industry, stands out for its own model-making but faces competition from countries like Turkey and China, which have cheaper electricity costs and fewer stringent environmental regulations.
- Jankowsky is actively engaging with politics, meeting politicians weekly and discussing his issues publicly, seeking changes in policy and legislation to support business owners like him in the transition to sustainable living.
- In addition to the manufacturing industry, general news in the Ore Mountains includes railway line disruptions, the Czech Republic's plans for a new nuclear power plant, and warnings from utilities against fraudsters.
- The green transformation in energy-intensive industries, such as foundries, involves implementing advanced technologies for energy efficiency, switching to renewable energy sources, and using recycled materials to promote a circular economy.
