German Chemical Industry Calls for Urgent Support Amid 7% Production Drop
The German chemical industry has been grappling with a significant downturn, with production levels dropping by nearly 7 percent compared to the previous year. The industry's orders have also taken a hit, declining by 10 percent. The German Chemical Industry Association (VCI) has sounded the alarm, calling for urgent economic signals and help from Berlin and Brussels to boost the sector and stimulate growth.
The gloomy mood in the industry is largely due to reduced production in customer industries, which has led to a decrease in domestic sales of chemicals. The VCI, led by President Dr. Markus Steilemann and Chief Executive Wolfgang Große Entrup, has been vocal about the need for competitive energy costs, deregulation, and clear political actions to support industry innovation and growth. The industry has been dissatisfied with the current situation for three years, with no signs of improvement. Weak demand has also put pressure on producer prices, which have fallen again. Furthermore, the industry's weak competitive position on foreign markets, exacerbated by higher tariffs, has added to its woes.
The chemical industry, a vital sector for Germany and Europe, urgently needs a clear focus on competitiveness, growth, and innovation. The VCI's demands for economic signals and help from Berlin and Brussels are a call to action to overcome the industry's downturn and boost the economy.
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