What is the main risk posed by the current wave of consolidation in Germany's chemical industry, according to union leader Michael Vassiliadis?

According to Michael Vassiliadis, head of the German chemicals union IGBCE, the main risk is that consolidation is becoming 'disorderly and uncoordinated', leading to plant closures that ripple through interdependent supply chains — such as the Dow cracker shutdown in Böhlen threatening downstream value creation across the Leuna chemical park — causing unnecessarily high production losses, economic damage, and job losses.

Why are Germany's steam crackers considered especially vulnerable, and what is the projected scale of their decline?

Steam crackers are especially vulnerable because they sit at the beginning of the chemical value chain, supplying basic building blocks for countless downstream products and processes; their closure disrupts entire industrial ecosystems. Evonik CEO Christian Kullmann stated that 'we will lose about half' of Europe’s 38 steam crackers — including 11 in Germany — over the next ten years, calling it a 'dramatic bloodletting' already underway.

Germany’s Troubled Chemical Makers Risk Disorderly Decline

May 22, 2026

High energy costs and Asian competition threaten Germany's chemical sector with disorderly decline, triggering major closures like Dow's Böhlen cracker. Industry leaders warn uncoordinated restructuring risks severe impacts on European competitiveness and employment.

bloomberg

2026-05-22

Germany’s Troubled Chemical Makers Risk Disorderly Decline

Germany’s Troubled Chemical Makers Risk Disorderly Decline

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