Quo vadis, Germany as a chemical location?

News

The German chemical industry is currently facing major challenges. Total production has fallen by 23% since 2021, and investment plans for 2023/2024 have been reduced by 40% of chemical producers. On top of this, there is global overcapacity, which is putting pressure on prices, and the cost of production factors is high compared to other countries - bureaucracy and regulation are also having a negative impact.

 

Strategic Refocus and Operational Excellence

Despite these adverse circumstances, Germany as a chemical location should not be written off. Rather, the situation calls for a fundamental rethinking of how to strengthen and transform the industry. The chemical industry is faced with the need to realign its strategic orientation with the goal of operational excellence. This includes building on the strengths of individual sites and integrating them into regional value chains, as well as increasing cooperation with the public sector. All measures must be aimed at increasing the attractiveness of the location.

 

Innovation Through Six Fundamental Principles

A successful location concept is based on six basic principles: Cost efficiency, sustainability, flexibility, intelligence, collaboration and digitalization. These elements form the framework for transforming the local chemical industry by focusing on efficient production processes, environmentally friendly technologies, flexible supply structures and strong networking.

The German chemical industry is therefore at a turning point. The current challenges are undoubtedly great, but only through strategic realignment, operational excellence and the implementation of proven principles can Germany secure its future and become more competitive. The industry has already proven its resilience and innovative strength in the past. It is time to bring these strengths to the fore again and actively shape the change.

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Dr. Hermann Schiegg
Partner

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Ole Hofmann
Senior Principal