Status: 08/18/2021 2:13 p.m.
The German chemical industry is leaving the corona crisis behind thanks to high growth rates and is heading for a record year. However, the industry is troubled by the rapidly increasing electricity price.
The German chemical industry has presented its balance sheet for the first half of 2012. In the six months to June, the turnover of the third largest German industrial sector climbed by twelve percent to a record value of 111 billion euros, as reported by the Association of the Chemical Industry (VCI). In addition to the good demand at home and abroad, the sharp rise in prices (plus 4.7 percent) also contributed to this.
Records in sales and investments
For the current year, VCI President Christian Kullmann expects a record turnover of 211 billion euros, despite tense supply chains and bottlenecks in preliminary products. The previous best value comes from 2018 with 203 billion euros, while in the Corona year 2020 only just under 190 billion euros were earned.
“For the second time since 2018, our industry will break the sound barrier of 200 billion euros this year and with a sales record, significantly exceed the pre-crisis level,” said Kullmann.
A record can also be expected for investments in property, plant and equipment. The chemical association expects an increase to almost nine billion euros after 8.4 billion euros in the previous year. The reason: Postponed projects from the previous year are being rescheduled and capacities are being expanded.
Every fifth company at capacity limits
Production increased by 5.9 percent in the first half of the year. However, the momentum could weaken somewhat in the second half of the year. For the full year 2021, the VCI expects a production increase of 4.5 percent. According to the association, every fifth company is currently reaching its capacity limits during production.
According to the VCI, almost all product areas benefited from the upswing. The increase was particularly large in basic chemistry: the production of plastics (polymers) rose by over 20 percent. Only chemical consumer goods such as soaps, detergents and cleaning agents saw a decline in volumes.
The industry sees a need for action on the electricity price
According to a VCI member survey, the biggest investment barriers are high costs (taxes, levies, construction costs), slow approval procedures and high energy costs. Before the general election, the industry is therefore demanding faster permits, lower taxes and more research funding.
The VCI also sees an urgent need for action with regard to the electricity price, which is currently three times as high for companies as in the previous year. This hits medium-sized businesses particularly hard.
For the foreseeable future, much more electricity will be needed for the climate change, but at the same time it will be artificially made more expensive, Kullmann complained. The reduction in the surcharge for renewable energies (EEG) decided on for 2022 could at best be a start. “The EEG has to go as quickly as possible.”