Germany's 2011 chemical sales to grow by 10% – trade group

05 September 2011 18:13  [Source: ICIS news]

LONDON (ICIS)--The German chemical industry association (VCI) said on Monday it expects full-year 2011 chemical sales in Germany to rise by 10% compared with 2010, despite a slowdown in the global economy.

Despite growth expected to be weaker in the second half of the year, the Frankfurt-based trade group also maintains its growth forecast of 5% for chemical production – as compared with 2010.

It added that with rising energy and raw material costs, prices of chemical products are likely to increase by 5% year on year.

“The German chemical industry continues on its way towards new record marks. Even though there are more signs of a cooling of the global economy, 2011 will be a good year for chemistry in this country,” said VCI president Dr Klaus Engel.

“Capacity utilisation is excellent at many plants and companies have expanded their workforce so that they can meet the worldwide demand for chemicals made in Germany. However, growth will be clearly weaker in the second half of 2011. We have been expecting this for quite some time,” he added.

In the second quarter of 2011 the German chemical industry recorded a slight drop in production and sales compared with the extremely strong first quarter of the present year, the VCI said.

Second-quarter chemical production fell by 0.6% compared with the first three months of the year, however, the VCI added that production plants had kept running at high rates.

“At 86.4%, capacity utilisation remained at a very high level. Production went up by 5.7% against the second quarter of 2010,” it said.

Chemical industry sales in the second quarter of 2011 fell by 1.6% to €45bn ($64bn) compared with the first quarter, the VCI added. However, second-quarter sales were 8.1% higher year on year.

($1 = €0.71)

By: Franco Capaldo
+44 (0)20 8652 3214

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