The German chemical industry is signaling a severe crisis with production, sales, and capacity utilization declining amid rising costs and regulatory pressures. Industry representatives report a ‘knockout’ scenario as traditional sites face threats; BASF has already shifted some production abroad, and Wacker Chemie announced plans to cut 1,500 jobs. Capacity utilization stands at 70%, below the 82% needed to break even. Challenges include a weak industrial economy reducing demand, especially from automotive and construction sectors, high energy prices following the energy crisis triggered by the Russian invasion of Ukraine, stricter climate regulations, and lengthy approval processes. Industry leaders call on the government for faster relief measures like lower electricity taxes, expedited permits, and a reliable industrial policy fostering new technologies. The chemical sector, a key industry in Germany, is at a critical crossroads, requiring urgent policy support to stabilize and adapt to current economic and regulatory conditions.

Source: https://www.zdfheute.de/wirtschaft/unternehmen/chemie-industrie-krise-arbeitsplaetze-100.html