▷ Five-fold transformation of the chemical-pharmaceutical industry

29.11.2021 – 16:05

Chemical associations Rhineland-Palatinate

Ingelheim (ots)

The industry caught up well after the Corona slump. Rising costs for raw materials, logistics and energy are slowing down recovery. Traffic light coalition with positive approaches, but a brake on innovation for pharmaceuticals.

Ingelheim. Supply bottlenecks, a shortage of skilled workers and the rapidly rising costs for energy and logistics are a burden for companies in the chemical-pharmaceutical industry. Automotive suppliers in particular are also suffering from the semiconductor crisis. “Despite good growth rates, the industry has not yet reached the pre-crisis level in production. At the same time, we are undergoing far-reaching structural change, a five-fold transformation: climate protection, circular economy, EU chemicals policy, digitization and demographic change,” emphasizes Sabine Nikolaus, chairwoman of the Chemical associations Rhineland-Palatinate.

The chemical industry generated sales of around 22.7 billion euros in the first three quarters of this year. This corresponds to an increase in sales of 19.2 percent compared to the previous year. Production (+ 18.7%) and orders (+ 21.8%) also increased. “The high growth rates are partly catching-up effects. The company’s sales growth is also driven by increased costs, some of which could be passed on to customers. However, companies are left with many costs and there is less money in their coffers,” explains Nicholas.

The pharmaceutical industry generated around 4 billion euros by September 2021, which corresponds to a sales increase of 61.5 percent. The development is largely shaped by a very high demand for vaccines. The increase in sales does not reflect growth in the entire industry. Production (6.9%) and orders (11.1%) are up, but in the same period last year the pharmaceutical companies struggled with declines in production (-18%) and orders (-14%).

The mood for 2022 is clouding over

The chemical economy will continue to cool down in the coming year. The recovery is being slowed down by a shortage of raw materials and rising costs. In addition, there are the expenses for the fivefold transformation: In a survey of the member companies of the Rhineland-Palatinate chemical associations, the companies stated burdens of up to 35 percent of their profits. Around four out of ten companies do not expect these investments to have a positive economic effect quickly.

The new federal government must now deliver

With regard to the coalition agreement of the federal government, Nikolaus explains: “The coalition agreement contains good approaches for our industry: faster approval procedures, less bureaucratization, biotechnology and hydrogen as the key to transformation, and chemical recycling as an option.” Nikolaus reacted with relief that temporary work and fixed-term contracts are still possible. The chairman of the chemical associations welcomed the fact that the new government would like to contribute constructively to the debate on the EU chemicals strategy and stressed the need for a risk assessment for the safe use of chemical substances.

There is criticism of the lack of tax policy impulses and the continuation of the price moratorium for pharmaceuticals. “Cost-intensive innovations, also in biotechnology, and a simultaneous focus on cost savings do not fit together. That does not help the pharmaceutical industry,” said Nikolaus.

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The Rhineland-Palatinate Chemical Associations are a community of the Rhineland-Palatinate Chemicals Employers’ Association and the Rhineland-Palatinate Association of the Chemical Industry. They represent the economic and socio-political interests of their around 200 member companies. Members are companies in the chemical industry or with a chemical-related focus based in Rhineland-Palatinate.
This media information can also be downloaded from the Internet at www.chemie-rp.de

Original content from: Chemistry Associations Rhineland-Palatinate, transmitted by news aktuell


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