Pact to stabilize chemical industry in eastern Germany

Politicians, business and trade unions want to stabilize the ailing chemical industry in eastern Germany with a joint chemical and refinery pact. "Action must now be taken at federal level to ensure the competitiveness of our chemical industry, to enable investment and innovation and to preserve jobs," said Saxony-Anhalt Minister of Economic Affairs Michael Richter (CDU) at the signing of the agreement in Magdeburg.

In addition to Richter, the signatories include Nora Schmidt-Kesseler, Managing Director of the Nordostchemie associations, Stephanie Albrecht-Suliak, Regional Director of the IGBCE North-East industrial union, and Christian Küchen, Managing Director of the Fuels and Energy trade association.

Central demands on politicians

The aim of the pact is to secure the competitiveness of the industry and maintain industrial value chains. Among other things, it calls for competitive energy prices, faster approval procedures and reliable framework conditions for investments.

The chemical industry in eastern Germany has been under pressure for years. According to official figures, around 63,000 people work in the industry and it generates an annual turnover of more than 30 billion euros. Nevertheless, production and turnover are declining and many companies are making losses.

Industry warns of consequences of the crisis

Schmidt-Kesseler emphasized the central role of the industry for the location. "The chemical-pharmaceutical industry and the refinery sector are of fundamental importance for industrial value creation, prosperity and economic resilience in our country," she said. At the same time, she warned that thousands of well-paid industrial jobs and entire value chains in Saxony-Anhalt were at risk.

Employers' associations and trade unions had already warned of a further decline in the industry at a chemicals summit in Böhlen, Saxony, in December.

Additional pressure from global crises

Geopolitical developments are putting additional pressure on the industry. In particular, the situation in the Middle East and disrupted supply chains are driving up the cost of energy and raw materials and causing delays in important preliminary products.