Overview
- The Hessian chemical sector, in Wednesday’s update from VCI Hessen and HessenChemie, reported a 4% production drop in 2025 and output now 31% below 2021.
- A new survey of member firms shows 80% expect flat or falling production, 72% foresee lower sales, 92% see no profit improvement, and 58% plan to cut investment.
- Pharma production in the state grew about 2% in 2025, which leaders linked to precautionary U.S. purchases tied to tariff moves, and they cautioned this boost may fade this year.
- Industry analysts and trade groups say the Iran war and risks near the Strait of Hormuz are pushing up oil and gas costs and forcing pricier, longer shipping routes with higher insurance premiums.
- Associations call for cost relief and simpler rules, arguing the new industrial power price will reach only around one in ten firms and cut their electricity bills by roughly 10%.