Frankfurt, Germany – The German chemical industry is undergoing a ‘reorganisation’ as geopolitical developments in the region impact corporate strategies, according to industry assocation VCI.
Citing a recent member survey in March, VCI said many companies are planning to convert their energy supply to renewable energies, for example by investing in their own solar or wind power generation systems.
Furthermore, companies are tapping into energy-efficient production processes to accelerate their sustainable transformation.
Almost 70% of the companies stated that they wanted to reduce their dependency on primary products from countries with “a high risk potential” and aimed to diversify supply chains globally.
“Almost every second company is putting its globalisation strategy to the test,” said the VCI 9 March.
"But the bottom line is that companies want to benefit from global growth both through exports and through local production," it added.
According to VCI, how cost structures and energy prices level off in the medium term will be decisive for the German chemical industry.
The association predicted that there will be a structural change within the industry, noting that "not all production facilities that were shut down as a result of the energy crisis will be connected to the grid again."