Costs increase, Gazprom reduces German chemical industry in trouble

In the recent period, due to geopolitical factors, the European chemical industry has attracted attention from all parties, especially the German chemical industry

The chemical industry has had difficulties in the first half of the year

In the first half of 2022, German pharmaceutical and chemical production rose slightly, up 0.

In the first half of 2022, sales in the entire pharmaceutical and chemical industry in Germany increased by 22.

At the same time, the VCI said many chemical companies were facing more pressure on their profit margins

In the first half of this year, Germany's fine and specialty chemicals production fell the most, down 9.

Preparing for gas supply cuts

At present, it is very likely that natural gas from Russia will be cut or even completely cut off

Christian Kuhlmann, President of VCI and Chairman of Evonik Industries, said: “The energy issue depends to a large extent on the direction of industrial policy in the coming months

　　The VCI said the association is working with the German federal government to prepare for various scenarios in which Russian gas supplies are reduced

　　"Although no one wants coal-fired power plants anymore

　　The VCI did not publish a forecast for the German chemical industry for the full year of the year in May due to the uncertainty brought about by the conflict in Russia and Ukraine and the new crown pneumonia epidemic

　　Adjusting Policies to Improve Competitiveness

　　The VCI said the balance between the EU's environment and climate agenda and maintaining international competitiveness needed to be rebalanced

　　The VCI said the number of foreign-invested projects in Germany has been falling significantly since 2017 due to high energy costs, huge hurdles, and a lengthy permitting process