The consequences of the war in Ukraine are leaving ever deeper marks on the chemical industry. Companies are struggling with the sharp rise in energy and raw material prices as well as ongoing supply bottlenecks and are therefore having to significantly reduce their production. "We literally have to dress warmly in order to survive this winter and the coming year," explained the President of the German Chemical Industry Association (VCI), Evonik CEO Christian Kullmann. "The immense challenges pose a serious threat to the competitiveness of our companies."
The VCI expects production in the industry to shrink by 5.5 percent this year. Production in the chemical industry alone is likely to fall by as much as 8.5 percent, the association announced in Frankfurt. In the second quarter, production in the chemical and pharmaceutical industry fell by 6.4 percent compared to the previous quarter. Turnover grew by 3.4 percent to 64.9 billion euros due to sharply rising prices.
