Frankfurt/Main (dpa/lhe) – The chemical industry in Hesse is concerned about the coming year because of the high energy prices. For 2023, a third of the member companies expect a further increase in energy costs by 50 percent, the Association of the Chemical Industry (VCI) Hessen announced on Tuesday in Frankfurt. According to a survey, around two-thirds of the companies see their current business situation as good or satisfactory, but expect the earnings situation to deteriorate significantly in the coming months.
From January to August, production in energy-intensive chemicals fell by almost 9 percent compared to the same period last year, to its lowest level in nine years. At the same time, according to the VCI, incoming orders were 12.5 percent down on the previous year. Sales up to August, on the other hand, rose by 13.6 percent to around 12.9 billion euros. In the chemical industry, prices for many products have risen sharply, which is driving revenues. “The energy crisis triggered by Russia’s attack on Ukraine hit our industry with full force,” said Jochen Reutter, Chairman of the VCI Hessen. Meanwhile, the pharmaceutical industry in the country proved to be stable: it achieved sales of 9.9 billion euros up to August with increasing production – plus 9.4 percent compared to the same period last year.
The VCI Hessen explained that the high prices for gas, electricity and petroleum are the biggest problem for companies in production. In the survey, three quarters each gave the high energy prices and price increases for primary products as the reason for disrupted operational processes. The association sees the fact that more than half of the companies are postponing investments in property as a warning sign.
Managing Director Gregor Disson called for shorter approval procedures and an “effective gas and electricity price brake” for the industry with a good 61,000 employees in Hesse. Dirk Meyer, General Manager of the HessenChemie employers’ association, spoke out in favor of better recognition of foreign professional qualifications in the fight against the shortage of skilled workers.