German Chemical Sales Growth to Slow Next Year, VCI Says
Germany’s VCI chemical association, which represents companies including BASF SE (BAS) and Evonik Industries AG, said sales growth will slow next year from a record in 2011 as customers reduce stock piles.
Sales for chemical goods will grow 2 percent, with production and producer prices each rising 1 percent, the Frankfurt-based association said in a statement today.
Germany’s chemical industry is poised to miss the VCI’s growth projections this year, with sales expanding 9 percent, less than an original 10 percent forecast outlined in November. Growth slowed in the second half, yet sales for the year will still be at a record of 186.5 billion euros ($250 billion), the VCI said.
“The risk of an economic setback has become stronger more recently,” said Klaus Engel, who heads the VCI and is also chief executive officer of Evonik Industries AG. The industry is not facing a recession, he added.
The number of jobs in Germany’s third-largest industry will rise 2.5 percent this year to 425,000, VCI estimates.
BASF, the world’s largest chemicals maker, on Nov. 29 raised its sales target for the end of this decade to 115 billion euros, translating into an average 6 percent increase per year.
To contact the editor responsible for this story: Benedikt Kammel at email@example.com