Chemical earthquake in central Germany: 550 jobs at risk!

Chemical earthquake in central Germany: 550 jobs at risk!

The chemical industry in Central Germany is facing a serious test. Dow Chemical has announced that it will close several plants in Böhlen, Saxony, and Schkopau, Saxony-Anhalt, by the end of 2027. In total, around 550 jobs will be affected, which could place a heavy burden on the local economy. Sächsische reports that ...

This drastic decision by Dow is primarily driven by high energy prices, rising carbon costs and market overcapacity. In particular, the planned closure of the steam cracker in Böhlen, which produces 600,000 tons of ethylene and propylene annually, could have far-reaching consequences. These raw materials are essential for plastic production and are further processed via a 1,300 kilometer long pipeline network. IG BCE is already warning that this could have a domino effect and have a negative impact on the industrial future of the chemical triangle. Lab News informs about the concerns in the chemical sector.

The outlook for short-time work and the energy price situation

The Wacker chemical plant in Nünchritz is currently not directly affected, but can feel the effects of the massive changes in the region. There is currently no short-time work here and in the past around 150 employees were put on short-time work before the holiday period, which corresponds to around 10% of the workforce. However, short-time work is expected again from September. High energy prices have been identified as a key issue threatening the industry's competitiveness. The EU Commission has already paved the way for an industrial electricity price, which gives the federal government scope to provide aid to industry. MDR highlights that the chemical industry is under pressure.

The average cost of industrial output was already over 17 cents per kWh last year, while Wacker is calling for a long-term relief proposal of 4 cents per kWh. A planned relief concept from the Federal Ministry of Economics could soon shed light on this. However, time is of the essence, as the final decision on the closures should be made by the end of July 2025.

The reactions from the region

The companies and those responsible on site are groaning under the pressure. Böhlen's mayor Dietmar Berndt describes the threatened closures as "catastrophic", while Saxony-Anhalt's economics minister Sven Schulze emphasizes the urgency of lower energy prices for energy-intensive companies. Prime Minister Reiner Haseloff has signaled that Dow does not initially want to give up the location completely, but is looking for possible partners. Nevertheless, the future of the chemical network in Böhlen remains uncertain.

In addition, the possible closure could affect both the biotech industry, which relies on raw materials from the region, and the research center for transformative chemistry in Schkopau. The unemployment rate in Saxony-Anhalt is 6.8 percent, whereas in Saxony it is 6.2 percent, and the threatening developments could cause these numbers to rise further. This makes the planned Eastern Chemicals Summit all the more important, as it aims to promote dialogue and develop solutions for the challenging situation in the chemical industry.