CAPTION: German chemical sector cuts more production as energy prices bite. (picture alliance/dpa)
Germany's major chemical and pharmaceutical sector is cutting back its production more as high energy prices affect hundreds of related businesses.
The German Chemical Industry Association (VCI) - whose members include BASF, one of the world's biggest chemicals producers - said on Wednesday that it expects production in the sector to shrink by 5.5% this year.
Chemical production alone is likely to decline by as much as 8.5%, the VCI said in financial hub Frankfurt.
"Cutting back production is a first step. If certain processes have to be shut down completely, they may never start up again," VCI president Christian Kullmann said.
The chemical and pharmaceutical industry, with more than 473,000 employees, is particularly affected by the energy crisis, which in Germany has focussed on a shortage of Russian gas.
According to the VCI, the sector is Germany's largest gas consumer, using 15% of the available natural gas. It needs gas as a source of energy and as a raw material for further processing - for example in plastics, pharmaceuticals or fertilizers.
In the second quarter of the year, production in the chemical and pharmaceutical industry fell by 6.4% compared to the previous quarter.
Turnover grew by 3.4% to €64.9 billion ($64.9 billion) due to strongly rising prices.
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