Economy
Chemical industry sees no end to the crisis – pharma grows
Expensive energy and the weak economy slow down Germany’s third largest industrial industry. The chemical industry sees no light at the end of the tunnel. But there is good news.
The German chemical and pharmaceutical industry does not yet see a trend reversal after a difficult year 2024. Production is likely to stagnate in 2025 and sales are slightly one percent decreased to 219 billion, the Association of the Chemical Industry (VCI) said in Frankfurt. While production in chemistry is likely to shrink by two percent, things are going better in the pharmaceutical industry: the industry association expects an increase of two percent here.
VCI general manager Wolfgang Große Entrup called for politics quickly. “There is no grace period for the new federal government, it has to deliver now.” Without industry, everything is nothing.
In 2024, sales in the chemical and pharmaceutical industry dropped by two percent to 221 billion euros in the previous year. Despite the strong declines in the final quarter, the production increased by one percent. While the chemistry shops on the home market ran badly, they grew in North America at the end of the year. Pharmaceuticals, wash and personal care products were in demand.
Despite the industry crisis, employment rose minimally to around 480,000 people, according to the VCI. Increases in the pharmaceutical industry, which benefits from good export transactions in Asia and the USA, equalized job losses in chemistry. Große Entrup said that an insolven wave was also not foreseeable.
Plants poorly busy
The energy-intensive chemical industry, the third largest industrial industry in Germany after car and mechanical engineering, suffers from high energy prices and the economic flaut. Industrial companies reduce production, which dampens the demand for chemical products. In the fight against the industry crisis, chemical companies such as BASF and Evonik have announced large renovation programs, stroke jobs and shut down systems.
Criticism of “shift station”
The VCI relies on the new federal government. The results of the exploratory talks between the SPD and the Union are steps in the right direction for taxes, electricity prices and reduction in bureaucracy. Nevertheless, there is a need to catch up. Große Entrup said that higher defense spending are without alternative. “But when investing in infrastructure, we cannot approved the shift station” out of the household – purely into the special fund. ” More prioritization in expenses is necessary.
dpa
Source: Stern
