FRANKFURT (dpa-AFX) – The German chemical industry does not expect an end to its deep industry crisis in the coming year. “The industry is sending SOS. 2025 was once again very difficult for our industry and the outlook is not getting any rosier,” said Markus Steilemann, President of the Association of the Chemical Industry (VCI), in Frankfurt.
The production facilities in Germany’s third largest industrial sector after automobile and mechanical engineering are only 70 percent utilized – “a historic low and far from profitable.” Every second company has too few orders. These have fallen by more than 20 percent at home and abroad since 2021.
For 2026, the VCI expects stagnating production in the chemical-pharmaceutical industry and a decline of one percent for chemistry alone. With falling prices, this means a total decline in sales of around two percent. Whether there will be a turnaround in 2027 depends on important customers such as the automotive and electrical industries, said Steilemann.
Chemicals in the red, pharmaceuticals growing
Energy-intensive chemicals have been suffering for years from high energy prices in Germany, the economic downturn and an oversupply of basic chemicals on global markets. Added to this is Chinese competition and US President Donald Trump’s tariff policy. The industrial electricity price, which the federal government wants to use to support energy-intensive sectors from 2026, is intended to provide relief.
This year, business in the chemical-pharmaceutical industry shrank. According to the VCI, production and producer prices fell by 0.5 percent compared to the previous year. Sales fell by one percent to 220 billion euros.
The differences were large depending on the industry sector: In the economically sensitive chemicals sector, production fell by 2.5 percent and sales fell by three percent. In the pharmaceutical industry, which is more independent of economic fluctuations, production grew by three percent and sales by 4.5 percent. The industry experienced a boom in the spring as companies brought forward drug deliveries because of Trump’s tariffs.
Job cuts at BASF and Co.
Overall, employment fell by 0.5 percent to around 478,000 people. Plant closures or production relocations that have already been announced are likely to lead to further job cuts, the VCI expects. President Steilemann called for reforms and more investments in education and infrastructure instead of new pension packages.
The mood in the chemical industry is bad; according to the Ifo Institute, the business climate deteriorated significantly in October. Chemical companies such as BASF, Evonik and WACKER CHEMIE have savings programs Job cuts announced. BASF boss Markus Kamieth recently told the “Handelsblatt” that the chemical industry was “probably experiencing its most difficult time in 25 years”./als/DP/nas
Selected leverage products on BASF
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on BASF
The leverage must be between 2 and 20
Advertising