Chemical Regulation and Deindustrialization: Germany's Chemical Industry at 1990s Levels

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Since 2021/2022, the German chemical industry has lost more than 20 percent of its production. High energy costs, structural location disadvantages, and increasing regulation are jeopardizing its competitiveness—with far-reaching consequences for industrial value chains and surface technology.

The German chemical industry is now back to production levels seen in the early 1990s. However, global demand has by no means disappeared—value creation and investments are increasingly shifting abroad. In a video interview, Dr. Apel from the German Chemical Industry Association (VCI) explains the role played by high energy costs, structural location disadvantages, and European chemical regulations in this context. The interview also addresses the risks of another gas shortage and the question of why regulatory decisions have consequences that extend far beyond the chemical industry.

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