Germany’s chemical industry is in freefall. More than 200 production facilities have already been shut down, and 40,000 skilled jobs are at risk. This development marks not only a crisis for the chemical industry but also a structural weakening of the entire industrial landscape. For months, the German government has been promising relief and a willingness to implement reforms, but in reality, companies are experiencing a political stalemate. The progressive decline of the industry is not only undermining its core substance but also accelerating the creeping loss of competitiveness, which is already driving job insecurity to a historic level. (welt: 05.11.25)
Political promises in limbo: Downward spiral without a turnaround
The Chancellor places great emphasis on symbolically supporting the chemical industry. However, the gap between political rhetoric and business reality is widening. Instead of urgently needed reforms, a dangerous vacuum is emerging, which the industry perceives as a chemical crisis. Investment decisions are being postponed, and production capacities are being relocated abroad. The result: an accelerated industrial decline, reflected in disrupted supply chains and dwindling export volumes.
Instead of broken promises, industry needs reliable relief programs. However, as long as energy costs explode and bureaucratic requirements continue to increase, any positive vision for the future remains trapped in the realm of wishful thinking.
Dramatic chain reaction: Loss of production sites as a highly dangerous consequence
The decline of the chemical industry is having far-reaching effects. Production stoppages in energy-intensive sectors are disrupting complex supply networks. Suppliers, logistics companies, and specialized service providers are experiencing massive losses. Companies with global operations are drawing conclusions – and choosing locations in North America or Asia. The resulting loss of production sites is not an isolated event, but rather an expression of dangerous political self-sabotage.
This development is affecting not only the industrial heartland of the Republic. Job insecurity is rising rapidly, especially in structurally weak regions that have depended on the success of chemical value creation for decades. The economic downturn thus threatens to provide further social tinder.
Escape from uncertainty: Leadership failure as a location factor
While energy prices reliably skyrocket, legislative procedures are blocking economic pragmatism. Companies are demanding planning security and investment protection. But instead of decisive policy changes, the tactic of political procrastination prevails. The repeated references to supposedly imminent “solutions” for industrial electricity prices seem like a maneuver to buy time. But time is a luxury that the German chemical industry can no longer afford.
In view of the erosion of competitiveness, the existential question arises: Has the German government truly recognized the seriousness of the situation in terms of industrial policy? As long as concrete decisions are lacking, this doubt seems justified.
Enough with the arguments over words – it’s time for action
Only a clear change of course can still halt the downward spiral. An energy model compatible with industry, precise regulation instead of bureaucratic burdens, and long-term investment security are prerequisites for an industrial renaissance. As long as the political will remains confined to non-binding announcements, the decline of industry will continue unchecked.
The chemical industry stands at a crossroads. Will it prevail in international competition, or will it continue its decline – with all the devastating consequences for jobs, expertise, and the national economy? The decision is now being made as to whether this downward trend will be transformed into a controlled recovery or an uncontrolled collapse.