Industry association: chemical production down by ten percent

FRANKFURT (dpa-AFX) – According to the Association of the Chemical Industry, the energy crisis has already led to a severe drop in production in the industry. “The situation is dramatic. Chemical production has fallen by ten percent since the beginning of the year,” said VCI Managing Director Wolfgang Große Entrup to the “Redaktionsnetzwerk Deutschland” (RND).

At the beginning of July, the VCI was still expecting a 1.5 percent drop in production for the chemical and pharmaceutical industry this year, given the expensive but adequate supply of energy and raw materials. For the pure chemical business, the association had promised a minus of 4 percent.

The valley has not yet been reached, said Große Entrup. “As the energy crisis continues, many companies are likely to lose their substance.” The VCI demands that the federal government’s program for reducing energy costs, with which it can support energy-intensive companies with state aid, be extended and changed. “In the current form, it is of no use to companies in the chemical parks in particular,” complained Große Entrup. The planned gas allocation must also be improved. In addition, the electricity tax must fall to the EU minimum.

According to the VCI, the chemical and pharmaceutical industry with more than 530,000 employees in Germany is the largest German gas consumer with a share of 15 percent. It needs gas as energy and as a raw material for further processing, for example in plastics, medicines and fertilizers.

The head of the mining, chemical and energy industrial union (IG BCE), Michael Vassiliadis, called for an extension of the short-time work regulation. “The federal government must also allow short-time work where high gas prices force production to be shut down,” he told RND. So far, short-time work induced by the market has not been allowed due to high prices and lack of profitability. “It can’t stay like this in this exceptional situation.”/als/DP/mis

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