With over EUR100bn in exports in 2014, the chemical sector is the third largest export engine for Germany. In 2015-16, the lower euro and the pick-up in demand in Europe will add EUR7.9bn and EUR11.3bn of additional exports.
Low oil prices will boost the industry's operating margins by 0.5pp in 2015 to 12.6%. However, this good news may not be enough to stimulate investments in Germany in the chemical sector. In 2015, capital spending abroad will increase almost six times as fast as in Germany.
Boosting net domestic capital assets and Research and Development spending are key strategies for German chemical companies to maintain high quality positioning. Favorable short-term drivers should not be an excuse, but an opportunity.
Chemicals in Germany: a window of opportunity that must not be missed - Report
Low oil prices will boost the industry's operating margins by 0.5pp in 2015 to 12.6%. However, this good news may not be enough to stimulate investments in Germany in the chemical sector. In 2015, capital spending abroad will increase almost six times as fast as in Germany.
Boosting net domestic capital assets and Research and Development spending are key strategies for German chemical companies to maintain high quality positioning. Favorable short-term drivers should not be an excuse, but an opportunity.
Chemicals in Germany: a window of opportunity that must not be missed - Report