German chemical sector see record year as prices rise, VCI report

German chemical sector to see record year as prices rise, VCI report

4:14 PM, 22nd July 2011
German chemical sector to see record year as prices rise, VCI report
Dr Klaus Engels, the President of the German Chemical Industry Federation (VCI)

FRANKFURT, GERMANY: The chemical industry in Germany is heading for a record year with the sector’s main association saying that it was raising its 2011 sales outlook. Production plants in the German chemical industry were operating at full gear. In the present year, Germany’s third largest industry will achieve new record figures. This much can be said after the initial six months. According to the German chemical industry association VCI, chemical production in the period under review increased by 6.5 percent as compared with the 1st half 2010.

“The industry’s production and sales will set a new high in 2011. At the present stage, it is perfectly justified to speak of an upswing in our industry,” said Dr Klaus Engels, the President of the German Chemical Industry Federation (VCI), while releasing the VCI’s latest half yearly report in Frankfurt.

The VCI expects sales for German chemical companies to rise by 10 per cent this year, higher than 9-per cent increase the federation had forecast in May.

The Frankfurt-based VCI raised its full-year forecast following a strong performance by the industry during the first half combined with higher-than-expected chemical prices.

Engels said he expected the growth in the industry, which is a key pillar of Germany’s export machine, to continue during the second half but at a slower rate amid signs that the global economy has lost steam in recent months.

The chemicals sector is also the nation’s third-biggest industrial sector after the car and mechanical engineering industries. The VCI expects production to grow by 5 per cent this year after rising by 6.5 per cent year-on-year during the first half.

The optimism of companies about further business developments is also reflected on the investment side. The VCI predicts for 2011 that the German chemical industry will invest some €7 billion in Germany; this would be an increase by 10 per cent against the previous year.

The economic situation is also expressed in personnel policies of companies. In the period from January to June 2011, the number of staff in the German chemical industry averaged 423,000. This was an increase by 2 per cent against the 1st half 2010.

(C) WOC News

 

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