Latest news with #MarkusSteilemann
Reuters
17-07-2025
- Business
- Reuters
German chemical lobby VCI sees no sector recovery before 2026
July 17 (Reuters) - Germany's chemical industry lobby VCI does not expect a sector upswing before 2026, even though the rapid downtrend the chemical-pharmaceutical industry has seen in recent years seems to be over, it said on Thursday. The chemical industry including pharmaceuticals recorded sales of 107 billion euros ($124 billion) in the first half of 2025, down 0.5% from a year earlier, affected by lower industry output as companies announce plant closures and job cuts, VCI said. "The situation remains tense. In the first half-year, our industry produced around 15 percent less than in the pre-crisis year of 2018," Markus Steilemann, VCI president and CEO of Covestro , said in a press release. The industry recorded a 1% drop in industrial production, while producer prices remained stable, the chemical association said. The third-largest industry of Europe's powerhouse Germany can be seen as a bellwether for the broader region's economy as it produces material components used in various sectors ranging from automotive and construction to agriculture and textiles. Germany's BASF ( opens new tab, Covestro and Brenntag ( opens new tab recently lowered their annual forecasts, citing persistent global economic weakness, subdued demand and the impact of U.S. tariffs, with no signs of a near-term recovery. "The business location Germany is overly expensive in an international comparison," Steilemann said, blaming this on excessive bureaucracy, non-competitive energy prices, and high taxes, labour costs and raw material prices. To overcome these challenges, the German government has introduced a series of fiscal measures to stimulate the sluggish economy, including a 500 billion euro infrastructure fund launched in March and a 46 billion euro tax relief package approved in June to support businesses through 2029. According to Anna Wolf, industry expert at the Ifo Institute for Economic Research, the new infrastructure fund and electricity tax cuts for industry are the main driving factors for German business expectations. ($1 = 0.8626 euros)
Yahoo
09-07-2025
- Business
- Yahoo
EU Commission looks to ease chemical industry rules
The European Commission on Tuesday proposed a series of regulatory changes aimed at easing administrative burdens and cutting costs for Europe's chemical industry. The measures include simplifying labelling requirements for hazardous chemicals, streamlining the registration process for fertilizers, and revising EU regulations on cosmetics. According to the commission, the changes could save the industry at least €363 million ($425 million) annually. Business associations welcomed the initiative. "For years, regulatory obstacles have been thrown in the way of the sector," said Markus Steilemann, president of the German Chemical Industry Association (VCI). He called the commission's move 'a first step' in supporting competitiveness and innovation in the industry. But environmental groups and Green Party lawmakers have raised concerns, particularly over changes to cosmetic safety rules. German MEP Jutta Paulus warned that the revised regulations could allow carcinogenic or reprotoxic substances in cosmetics, as long as they pose a risk only when ingested. Germany's BUND environmental and nature conservation association echoed the criticism, cautioning that the reforms could weaken health and environmental safeguards. The European Commission insists that the planned reforms will maintain high levels of protection for both health and the environment. The proposals have cleared initial procedural steps and will proceed to negotiations with EU member states and the European Parliament.
Yahoo
20-05-2025
- Business
- Yahoo
German chemical industry picks up after long lean spell
Sales in the German chemical and pharmaceutical industry rose by 4.4% in the first quarter compared with the previous quarter to €54.8 billion ($62 billion), the Chemical Industry Association (VCI) announced in Frankfurt on Tuesday. This means that the industry, which employs around 480,000 people in Germany, has made up for the slump of the previous months. "If the tariff dispute does not escalate further and the German government pushes ahead with its growth package as announced, the outlook for our industry could brighten as early as this year," said VCI president Markus Steilemann. In the first quarter, production rose by 6.7% in all sectors compared to the previous quarter, and by 4.7% in the chemical industry alone. In the pharmaceutical sector, it grew by some 10%, probably because customers brought forward orders for medicines out of concern about US tariffs. The VCI attributed the recovery to an upturn in almost all sectors, both domestically and abroad. The assessment of the current business situation has improved. However, business expectations for the near future have clouded somewhat, with fears that the US tariff policy will reduce export opportunities for the chemical industry and its customers. In addition, Chinese goods could be increasingly diverted to Europe, increasing pressure. Pharmaceutical companies also fear high tariffs on the important US market. The association therefore expects production to stagnate and sales to decline slightly. Sign in to access your portfolio
