The surge in gas prices in Europe has pushed companies that make steel, fertilizer and other products to shift their output to the U.S., where energy prices are stable and the federal provides incentives to expand, the Wall Street Journal reported.
Among the companies that have boosted their U.S. operations are chemical maker OCI (OTC:OCINF), which this month said it would expand an ammonia factory in Texas. Jewelry company Pandora (OTCPK:PNDZF) and carmaker Volkswagen (OTCPK:VWAGY) this year said they would increase their operations in the U.S.
Steelmaker ArcelorMittal (MT) this month announced cutbanks at two German plants, but saw better-than-estimated performance from its investment in a Texas plant that makes raw material for steel, the newspaper reported.
In addition, electric carmaker Tesla (TSLA) halted plans to make battery parts in Germany while seeking to qualify for tax credits in the U.S. The Inflation Reduction Act that President Biden signed last month offers rebates and other incentives for renewable energy.
The U.S. also offers relative stability compared with China, where there are sporadic lockdowns and supply-chain bottlenecks because of COVID-19.
Whether the damage to the European economy will be permanent depends on how quickly gas supplies from Russia can be restored and on the availability of alternative sources of energy, the Journal reported.