Germany’s chemical industry suffered one of its worst years ever in 2009, according to the German chemical industry association (VCI). Sales are estimated to have declined 12.5% in 2009 to €154.4 billion ($222.1 billion), as foreign sales fell 12.0% to €85.4 billion and domestic sales were down 13.5%. Production of basic chemicals fell 16% and specialty chemicals production fell 14%, but pharmaceutical chemicals production declined only 2.5%. Investments by German chemical firms declined 10.0% to €6.3 billion, as companies delayed projects and experienced decreased capacity, which averaged 75%. Chemical production is estimated to have declined 10.0% in 2009, and chemical prices declined 2.5% on average. For 2010, the VCI forecasts sales for Germany’s chemical industry to increase 6.0% and production to rise 5.0%, with producer prices increasing 1.0%. However, the VCI does not expect investment levels to remain stable.

Source: VCI