German Chemical Industry Association: Many companies are beginning to cut production due to supply chain disruptions and soaring energy costs

Germany’s chemical industry has warned that the shockwaves triggered by the Iran war have begun to set off a chain reaction in Germany, and many companies are cutting output due to supply chain disruptions and soaring energy costs. At the German Chemical Industry Association (VCI)’s annual press conference in Frankfurt, the association said that as costs rise, shipping lanes for key raw materials and intermediate products around the world have been disrupted, further intensifying the pressure. These issues have sparked fears of another round of industrial slowdown in Europe’s industrial core regions. “The situation is spiraling in the wrong direction, and we can only hope it ends soon.” VCI Secretary General Wolfgang Großenzepru told reporters, describing the intensifying price and supply shocks brought about by the conflict. “The longer it lasts, the stronger its impact will be.” (Cailian Press)