Eastern German chemical firms warn that location concerns are curbing investment plans
Executive summary: A Handelsblatt survey shows many chemical companies in eastern Germany view the country's location as increasingly critical, which is influencing their investment plans. Location concerns could lead to reduced capital expenditure, affecting output, employment and supply chains in a sector vital to Germany's manufacturing base.
Who is involved: Chemical industry firms in eastern Germany, survey respondents, and German policymakers responsible for location competitiveness.
Likely next: Firms may delay or cancel investments, prompting policymakers to address energy costs, regulatory burdens and infrastructure to maintain sector attractiveness.
A Handelsblatt survey reveals that many chemical companies in eastern Germany perceive the national business location as increasingly unfavorable, which is influencing their capital expenditure decisions. The sentiment reflects worries over energy costs, regulatory burdens, and infrastructure, potentially slowing growth in a sector vital to Germany's manufacturing base. While the survey does not quantify the scale of investment cuts, it signals a possible shift in regional industrial policy priorities. Stakeholders may need to address location competitiveness to avert a downturn in chemical sector investment.
Timeline
- — +++ Ukraine-Krieg +++: Kiew unter russischem Raketenbeschuss (Handelsblatt)
- — Umfrage: Investitionsstopp? Chemie im Osten hadert mit dem Standort (Handelsblatt)
Analysis — what this means
Sectors affected
- Chemical industry