04 December 2008 17:53 [Source: ICIS news]
TORONTO (ICIS news)--Germany’s chemical production is expected to fall 1% in 2009 as producers will be cutting back due to weak demand, the country’s chemical industry association VCI said on Thursday.
Excluding pharmaceuticals, the decline in chemicals would be 2.5%, said Frankfurt-based Verband der Chemischen Industrie (VCI).
VCI president Ulrich Lehner said producers’ order books were hit by lower demand from industrial customers, in particular the automotive and construction sectors.
"With a package of measures, our member companies are preparing themselves for the recession,” he added.
“They are doing whatever they can to keep their permanent staff. We very much hope that they can hold out until we have passed the trough and the demand picks up again."
For 2008, VCI expected zero production growth from 2007, it said. This compares with VCI’s 2008 growth forecast of 2.5% from early this year.
Commenting on a government measure to address the ongoing economic and financial crisis, Lehner urged sustainable strategies to make ?xml:namespace>
Short-term stimulus programmes were a double-edged sword as they would distort competition, he said.
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