VCI: German chemical production expected to fall by 8.5% in 2022

Due to the dramatic changes in the European gas and electricity market, the German Chemical Industry Association (VCI) once again lowered its forecast for the whole year on September 14, and German chemical production is expected to fall by 8.

Previously, the VCI predicted a 4.

According to the VCI, astronomical energy prices, sharp increases in raw material costs and persistent supply bottlenecks have caused "production in all sectors of the German chemical and pharmaceutical industry to collapse" and therefore threaten Germany's future

The chemical and pharmaceutical industries are Germany's third pillar industry

The industry is currently hit particularly hard by the energy crisis, with chemical and pharmaceutical companies forced to cut production

According to the semi-annual report released earlier by the VCI, production in almost all areas of the German chemical industry has been declining

Christian Kuhlman, President of VCI, said: "The enormous challenges pose a serious threat to the competitiveness of our company.

It is uncertain whether Germany will need gas rationing

Due to higher producer prices, sales in the German chemical and pharmaceutical industry increased by 22% over the previous year to 130 billion euros

However, VCI said that many chemical companies in Germany have seen their revenues fall, making it increasingly difficult for companies to pass on high energy and raw material costs to their customers

The VCI also expects German chemical and pharmaceutical production to fall by 5.