According to the industry association VCI, the industry is in a deep crisis.
(Photo: dpa)
Frankfurt The German chemical industry further reduced its production in the second quarter for cost reasons. The hope of a recovery must be postponed in view of increasing weak demand, said the industry association VCI on Thursday when presenting its economic report. VCI President Markus Steilemann renewed the call for internationally competitive electricity prices and deregulation.
According to the VCI, the industry is in a deep crisis. Sales between April and June were 15 percent below the comparable figure from the same quarter of the previous year, while production fell by eight percent.
Outside the important pharmaceutical division, production even fell by 14.2 percent. The facilities were only at 77.3 percent capacity. The aim is usually a value of around 85 percent. Employment, however, was stable at 477,000 people.
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According to the association, companies expect the business situation to deteriorate further in the second half of the year. The VCI has become more pessimistic for the year as a whole and now expects a production decline of 8 percent (previously minus 5 percent). If prices fall, annual sales are expected to fall by 14 percent.
Given the immense locational disadvantages, it is more than questionable whether and to what extent the industry will be able to benefit from a global upswing in the future. “The situation is serious and the mood is correspondingly bad,” said Steilemann, according to a statement.
The chemical industry association is calling for political support.
(Photo: dpa)
According to the VCI, the tense economic situation is not yet noticeable, at least when it comes to the number of employees. The main contributing factor to this is the shortage of skilled workers. However, individual companies are already on the agenda for hiring freezes or short-time work in particularly affected areas.
More: What the chemical crisis says about German industry