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After a long doldrum: chemical industry is adding
In the third largest German industrial industry, it goes up again after a long descent. The chemistry relies on the new federal government. The greatest danger lurks abroad.
The German chemical and pharmaceutical industry left its long doldrums behind at the beginning of the year. In the first quarter, sales of 4.4 percent took 54.8 billion euros compared to the previous quarter, the Association of the Chemical Industry (VCI) said in Frankfurt. With around 480,000 employees in Germany, the industry made up for the slump in the previous months.
“If the customs conflict does not escalate and the federal government will launch a growth package as announced, the perspectives for our industry could brighten up this year,” said VCI President Markus Steilemann.
In the first quarter, production rose by 6.7 percent to the previous quarter and in chemistry by 4.7 percent alone. In the pharmaceutical industry, it even grew by a good 10 percent – probably because customers exceeded medication out of worry about US tariffs.
Worries about Trump’s tariffs
The VCI justified the recovery with a revival in almost all sectors, both at home and abroad. The assessment of the current business situation has improved. However, the business expectations have clouded: the US customs policy is reducing the export opportunities of chemistry and its customers. In addition, Chinese goods could be increasingly redirected to Europe and increase the pressure. Pharmaceutical companies fear high tariffs on the important US market.
The association therefore remains careful for the current year and confirmed its forecast. According to this, production should stagnate and sales should decrease slightly by one percent to around 221 billion euros.
Hope for a new government: “The chances are there”
The energy-intensive chemistry, the third largest German industrial industry after car and mechanical engineering, suffers from high energy prices and the economic flaut. Chemical companies such as BASF and Evonik have announced large conversion programs, delete jobs and sometimes shut down systems.
The VCI puts hope for the European internal market. “The chances are there. Germany now has a stable government that holds all trump cards in his hand,” said President Steilemann. It must reduce structural deficits and toast reforms. This includes, in particular, significantly reduced energy prices, fast bureaucracy reduction and a tax reform.
dpa
Source: Stern
