Germany's chemical production could rise 40% by 2030 – study

05 October 2012 17:57  [Source: ICIS news]

LONDON (ICIS)--Germany’s chemical industry production could rise 40% by 2030, the country’s chemical producers trade group VCI said on Friday, citing the results of a study it commissioned.

“If politicians in Berlin make the right decisions, Germany’s chemical industry will continue to grow in coming years,” said outgoing VCI president Klaus Engel in presenting the study at a VCI gathering in Essen. 

The study, by research firm Prognos, sees continued growth in demand – in particular from Asia and Latin America – for Germany’s chemical products. Demand will be driven by "global megatrends", in particular the growth in the world's population.

In order to maintain its international competitiveness, Germany’s chemical industry should pursue a four-plank strategy, focussing on innovation, specialty chemicals, efficient use of energy and raw materials, as well as renewable raw materials, the firm said.

However, in an alternative scenario, Prognos warned that if Germany should pursue restrictive industrial and energy policies it could see deindustrialisation, harming the country’s economy to the tune of €440bn ($571bn).

Engel added that if the three pillars of energy policy – secure, clean and affordable – are no longer guaranteed, Germany’s economic system will suffer deep cracks in its industrial value chain, harming the country’s core industrial producers.

Insufficient of supplies of energy-intensive chemical inputs would prompt important industrial producers to shift their operations elsewhere, he said.

Engel, who is CEO of Germany-based specialty chemical major Evonik, was speaking on his last day as VCI president. He will be succeeded in that role on 6 October by Karl-Ludwig Kley, the CEO of specialty chemicals and pharmaceuticals firm Merck KGaA.

Frankfurt-based VCI represents the interests of about 1,650 Germany-based chemical firms.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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