Business News
German chemical sector expects recovery despite sharp output slump
Jul 8, 2009, 10:52 GMT
Berlin - Despite forecasting the biggest drop in German chemical production since 1975 this year, the VCI industry association expressed cautious optimism Wednesday about the outlook for what it calls one of the nation's key export sectors.
'Despite the low hanging clouds we can now make out a glimmer of hope,' said VCI chief Ulrich Lehner releasing the industry's latest forecasts.
In the meantime however the VCI said with global chemical demand dragged by recession, production in Germany will fall by 10 per cent this year to post its biggest drop since the 1975 oil crisis. Turnover for 2009 is forecast to decline by 12 per cent.
Already industry turnover slumped by 16.5 per cent during the first of the half of the year to 69.7 billion euros with production falling by 15.5 per cent. Foreign deliveries fell by 17 per cent with domestic deliveries dropping by 16.5 per cent, the VCI said.
However, chemical production appears to have stabilized in recent months, said Lehner.
'Our companies for the most part now expect a modest recovery in the chemical business during the second part of the year,' he said.
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