Germany’s Chemical Plants Operate at Lowest Level in 20 Years
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Germany’s chemical companies are grappling with another year of decline as Europe’s biggest economy is at the onset of a de-industrialization process, industry group VCI warns.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Germany’s chemical companies are grappling with another year of decline as Europe’s biggest economy is at the onset of a de-industrialization process, industry group VCI warns.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Its preliminary 2025 figures released on Wednesday show that plants operated at only 70% capacity, the lowest since 2002 and clearly under the profitability threshold of about 80%, VCI said. While the pharmaceutical industry’s production and revenue expanded this year, the chemical sector’s output fell 2.5%.“The industry is sending out an SOS,” said VCI president Markus Steilemann in a statement. “2025 was another very difficult year for our sector, and the outlook is not looking any brighter.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.For next year, the industry group anticipates an even sharper drop in prices and projects a 3.5% decline in revenue. Tariffs are adding to the pressure, driving foreign revenue down by 3.5%, a steeper fall than the already shrinking domestic earnings.The main problem is oversupply stemming largely from China, coinciding with persistently weak demand from key buyers such as automakers. Order intakes are 20% below the pre-crisis level in January 2020, according to the industry group. Their survey shows that every second company faces a severe shortage of orders.Added to this mismatch of high supply and low demand are high energy and labor costs. German companies lost price competitiveness, the industry group states. Some 75% of the firms in the survey are implementing cost-cutting programs and one in five firms is shutting down or relocating.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.