German Businesses Criticize Federal Energy Policy as Rising Costs Drive Historic Porcelain Manufacturer to Insolvency

Nearly 2,400 companies across Germany have voiced strong criticism of the federal government's current energy policies amid soaring costs that threaten business sustainability. This widespread corporate backlash underscores the severe challenges German industries face due to escalating energy expenses and reduced demand caused in part by geopolitical tensions, such as the conflict in Iran.

A stark example of these difficulties is the porcelain manufacturer Kahla from Thuringia, which recently filed for insolvency after more than 180 years of operation. Managing Director Daniel Jeschonowski confirmed the insolvency filing submitted to Gera District Court on February 27, 2026. The company, which employs 120 people, aims to continue operations while seeking a strategic partner to ensure its survival. Despite previously restructuring after an insolvency in 2020, Kahla has struggled with decreasing orders and prohibitive energy costs that hindered its expected financial turnaround in 2026.

Jeschonowski stated, "We want to save the porcelain manufacturer; the workforce stands behind us," reflecting a determination to maintain production and fulfill customer commitments. Works council chairman Stefan Schau echoed this, emphasizing the commitment to persevere despite the adverse conditions. Kahla's history dates back to 1844, and its "Made in Germany" porcelain products serve private customers as well as hotels, restaurants, and businesses in 60 countries worldwide.

These business struggles illustrate the immediate economic impact of Germany’s federal energy policy on industrial sustainability, exacerbating financial stress and prompting calls for urgent policy reconsideration. As Kahla seeks new partnerships, the broader corporate community continues to rally for approaches that better support the energy needs of German companies and safeguard their operational viability.