Germany energy costs hurt chems producers' competitiveness – exec

23 March 2012 16:30  [Source: ICIS news]

LONDON (ICIS)--Germany-based chemical producers are suffering a competitive disadvantage because of the country’s high energy and power prices, a chemical industry executive said on Friday.

Walter Leidinger, head of the Dormagen chemical production park near Cologne, said that Germany’s power prices were up to 20% higher than in neighbouring countries.

“This is a clear disadvantage compared with chemical production in other European countries,” Leidinger said.

Political decisions were a key factor in determining Germany's power prices, and those decisions were as such the basis for competitive conditions for the country’s industrial producers, he added.

Last year, Germany’s government decided to end all nuclear power generation by 2022, a move that prompted chemical and other industrial producers to voice concerns about further increases in power prices, as well as supply shortages.

As for Dormagen, Leidinger said that the site’s prospects for 2012 are good.

He pointed to Bayer’s €150m ($197m) investment to build a 300,000 tonne/year toluene di-isocyanate (TDI) plant at Dormagen, as well as investments by LANXESS and Bayer CropScience to expand their production at the site.

Meanwhile, Finland-based chemical firm Kemira should soon get permits to start building a water chemicals facility at Dormagen, he added.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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