Chemistry - Vogler sees chemical industry in "alarming situation"
Bernd Vogler, Managing Director of the Rhineland-Palatinate Chemical Associations, has painted a bleak picture of the situation in the industry. "We have an alarming situation with production and orders in the deep red, plants are at a standstill and production is being relocated," said Vogler in Ludwigshafen on Wednesday. "Energy is too expensive and companies are frustrated by regulations and bureaucracy of all kinds."
What politicians have done or even announced is in no way enough to "turn the tide", he said. "Well meant is not yet well done." The chemical industry in the federal state will probably end the year with a 23 percent drop in turnover, a 20 percent drop in production and a 30 percent drop in orders. "That's a severe slump, the likes of which we haven't seen for decades." Plant capacity utilization is "catastrophic" and stands at 75 percent. "That eats into profitability."
Vogler cited the construction industry as one reason. "The industry is extremely paralyzed, there are slumps and it is not foreseeable that it will recover for years." Traditionally strong exports are not saving the chemical industry either. "We are also seeing a sharp drop here because the global market is weakening. We are also too expensive in some areas."
In a survey of members, 58 percent of companies described the situation as poor to unsatisfactory. "In this situation, it is difficult to decide to invest in the location," said Vogler. It is not the case that no more investments are being made. "There are indeed one or two positive messages. That doesn't change the fact that investments are flowing out of Germany."
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The chemical industry in Rhineland-Palatinate, as mentioned by Vogler, is currently facing a 23% drop in turnover and a 20% decrease in production due to the alarming situation. Despite having plants at a standstill and production being relocated, the industry is still struggling in Ludwigshafen, a prominent city in the region. The high cost of energy and bureaucratic regulations are also contributing to the frustration of the chemical companies.
Source: www.stern.de
