A welcome farewell to 1996
15 Jan 2000
The German chemical industry's hard times are continuing, with growth during 1996 driven almost totally by exports and overseas activities. In the Netherlands, chemical producers are expecting a production increase to fuel a slow recovery after a disappointing year.
The German chemical sector saw its exports increase by a total of 3.5 per cent, to DM104billion. But sales to other countries within the EU slipped 1.4 per cent to DM38.6billion. Sales from production in Germany also fell, by 2 per cent to DM177billion; this was a result of low prices and slack demand. Sales from foreign output grew 2 per cent, however, to DM99billion, with help from the more buoyant economy and `friendlier economic climate' in North America and rapid growth in central and eastern Europe.
Economic conditions in Germany are still so uncertain that VCI president Jurgen Strube urged the association's smaller and medium-sized members to invest in Eastern Europe to ensure their future profitability. He also welcomed the prospect of more overseas investment in Germany, which would help create employment. However, he cautioned, this would not happen without a comprehensive reform of the tax system.
Over in the Netherlands, meanwhile, the VNCI reported `cautious optimism' about 1997. Prices fell during 1996, but the association expects them to hold steady during this year, while production will edge up.
The VNCI estimates the Dutch sector's turnover at Fls49.3billion in 1996, with profits of Fls4.1billion; these represent declines of 1 per cent and 20 per cent, respectively. The main cause of this was the average decline in prices, the association comments.
Prices are likely to remain stable in the coming year, however, with production enjoying a `slight increase.' This would push turnover above Fls50billion, with profits rising to Fls4.3billion.
{{Going Dutch: VNCI's performance
1995 1996 1997
Volumes +3% +2% +2%Prices +7% -3% 0%
Turnover Fls49.8bn Fls49.3bn Fls50.2bn (+10%) (-1%) (+2%)
Profit Fls5.0bn Fls4.1bn Fls4.3bn
Investment Fls2.7bn Fls3.1bn Fls3.4bnEnv costs Fls1.7bn Fls1.9bn Fls2.1bnEmployees 80 500 80 500 81 000}}
