German chemical industry confirms good results for 2017

2017 was a good year throughout for the German chemical-pharmaceutical industry – with major sales growth by over 5 percent. Strong business of industries across Europe, which further picked up in the course of the year, brought significant production increases. Capacity utilisation remained high. All sectors, including basic chemistry, recorded volume growth – so the German chemical industry association Verband der Chemischen Industrie (VCI) at its annual press conference.

Foreign business benefitted from the robust demand from China, the brisker US economy, and the economic stabilisation of emerging markets. In total, chemical production (incl. pharma) rose by 2.5 percent. The upturn in Germany’s third largest industry led to the highest employment level for 13 years, i.e. 451,500 staff. VCI President Kurt Bock: “After the rather mixed results of the past three years, 2017 can be called “a good year” without limitations.”

Forecast: The VCI expects further growth in the industry also for 2018, anticipating a production increase by 2 percent. With slightly rising prices (+ 1 percent), sales should improve by 3 percent. In the year 2018 as a whole, thus the industry could reach for the first time a threshold of 200 billion euros. The VCI forecasts more or less similar growth rates for foreign and domestic business.

Regarding the prospects for the industry, Bock notes the following: “We are confident that the upward trend will last next year. Dynamics remain high in domestic industrial production. Also, the upward trend in Europe seems intact; this should further encourage the export business. But where political aspects are concerned, we need to brace ourselves for persistently turbulent times.”

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