Germany: Chemical industry down, but not out
Key takeaways
- Hit by high energy costs and regulation, Germany’s chemical companies are scaling back production at home while expanding abroad.
- It generates hundreds of billions in annual revenue and directly employs about half a million people.
- The industry, however, has been beset by crisis in recent years, weighed down by high energy costs, growing regulatory burdens, a persistently weak economy, and intense competition from abroad.
Why this matters: an international story with cross-border implications worth tracking.
Hit by high energy costs and regulation, Germany’s chemical companies are scaling back production at home while expanding abroad. Can the trend be reversed?
https://p.dw.com/p/5Dm TSThe German chemical giant BASF has embarked on a major cost-cutting drive in its home market while investing aggressively abroad, particularly in China Image: BASF/dpa/picture alliance Advertisement Germany's chemical sector stands as a core pillar of the nation's economy, ranking third after automotive and mechanical engineering. It generates hundreds of billions in annual revenue and directly employs about half a million people.
The industry, however, has been beset by crisis in recent years, weighed down by high energy costs, growing regulatory burdens, a persistently weak economy, and intense competition from abroad.