The Dutch industry is in dire straits for some time already, as can be seen in an increase in the number of bankruptcies, mass layoffs at large companies and competition from abroad, with high energy costs as one of the main reasons.
High energy prices, high wage costs, regulatory pressure, staff shortages, foreign competition and unstable political policies are making it difficult for industrial companies in the Netherlands to keep their heads above water.
The latest figures from Statistics Netherlands (CBS) are clear. Compared to other sectors, the industry had the highest relative number of bankruptcies in April 2025.
More than 33 went bankrupt, compared to 26 in April 2024. The annual figures for 2024 show a similar picture. In 2024, 351 industrial companies were declared bankrupt, which is significantly more than in 2023, when 270 were forced to cease to exist.
In addition, major companies are implementing substantial workforce reductions. Steel company Tata Steel announced in April that it would cut 1,600 of its 9,200 jobs as part of a reorganization, which is more than one out of six jobs.
Tire manufacturer Vredestein closed its factory in Enschede last month and the port of Rotterdam area has also been hit hard with layoffs at various companies.
"Industry in the Netherlands is under pressure: production is being scaled down, companies are closing and investments are failing, including green investments," employers' organization VNO-NCW said in April. "The Netherlands has caused this itself, through our high energy rates and national levies."
The industrial sector is of great importance to the Netherlands. With more than 800,000 people working there, the industry forms an important part of the economy.
The energy costs in particular are the bottleneck. These energy costs are higher in the European Union than in the United States, according to a recent study by the Dutch Organization for Applied Scientific Research (TNO). Within the EU, the rates in the Netherlands are also higher than in other countries.
Dutch companies pay some of the highest electricity prices in Europe, averaging 95 euros per megawatt-hour, compared to 45 euros in Germany, 56 euros in Belgium, and 32 euros in France, it said. "All this leads to a poorer investment climate, less business confidence, less innovation and weakening or even departure of business."
"Industrial companies in R&D-intensive industries are moving their activities abroad due to the deterioration of the investment climate," it said, adding that new start-ups have insufficient possibilities to grow.
Last Tuesday, grid operator Tennet warned in a report that more measures are needed to prevent electricity prices from skyrocketing and that there is even a risk of a shortage of electricity in the future.
The energy transition is driving increased demand for electricity, fueled by the expansion of wind and solar power, sources that do not always guarantee stable supply. At the same time, several coal-fired power plants are set to close in the coming years.
"That makes the supply less certain: coal-fired power stations supply electricity at any time, while the wind is not always blowing," Tennet said.
According to the grid operator, power shortages could arise after 2030 as electricity production becomes increasingly dependent on weather conditions.
"If no action is taken, this could lead to undesirable shortages by 2033, particularly during winter and in the evenings. The industrial sector, in particular, may be significantly affected," TenneT warned.
Nuclear power is among the solutions being explored by the Dutch government. In a letter to the House of Representatives on Friday, Deputy Prime Minister and Minister of Climate and Green Growth Sophie Hermans outlined plans to construct a total of four new nuclear power plants, two of which are slated for completion by 2040, with the remaining two to follow afterward.
Currently, the Netherlands has only one operational nuclear power plant, located in Borssele, a small town in the province of Zeeland. Built in 1973, the aging facility has a capacity of 481 megawatts and meets roughly 3 percent of the nation's electricity demand.
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