Chemistry quake in Central Germany: 550 jobs in danger!

Chemistry quake in Central Germany: 550 jobs in danger!

Meißen, Deutschland - The chemical industry in Central Germany is facing a serious test. Dow Chemical has announced that several plants in Böhlen, Saxony, and Schkopau, Saxony-Anhalt, have to be closed until the end of 2027. A total of around 550 jobs are affected, which the local economy could heavily burden. Sächsische reports that ...

This drastic decision by DOW is driven primarily by high energy prices, rising CO2 costs and market overcapacities. 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 processed over a 1,300 kilometer pipeline network. The IG BCE already warns that this could result in a domino effect and could have a negative impact on the industrial future of the chemical triangle. [Lab News informs about the concerns in the chemical area] (https://lab-news.de/dohende-schliessung-von-weren-ein-schlag-fuer--osteutsche-chemi industrie/).

The outlook on short -time work and energy price situation

Currently the Wacker Chemical plant in Nünchritz is not directly affected, but can feel the effects of the massive changes in the region. At the moment, no short -time work and around 150 employees have been sent to short -time work before the holiday season, which corresponds to around 10 % of the workforce. From September, however, short -time work will be expected again. High energy prices have been identified as a central point that endangers the competitiveness of the industry. The EU Commission has already paved the way for an industrial current award, which opened the Federal Government scope for aid for industry. [MDR emphasizes that the chemical industry is under pressure] (https://www.mdr.de/nachrichten/deutschland/wirtschaft/chemieindustrie-ostdeutschland- industriestrompreis-muss-iegtml).

The average costs for industrial services were already over 17 cents per kWh last year, while Wacker demands a long -term relief proposal of 4 cents per kWh. A planned relief concept of the Federal Ministry of Economics could soon put light on the dark. However, the time is urgent, because 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 groan under pressure. Böhlen's mayor Dietmar Berndt describes the impending closures as "catastrophic", while Saxony-Anhalt's Economic Minister Sven Schulze emphasizes the urgency of lower energy prices for energy-intensive companies. Prime Minister Reiner Haseloff has signaled that Dow initially does not want to give up the location completely, but is looking for possible partners. Nevertheless, the future of the chemical association in Böhlen remains uncertain.

In addition, the possible closure could affect both the biotech industry, which is dependent 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, in Saxony, on the other hand, 6.2 percent, and the impending developments could continue to increase. All the more important is the planned east-chemical summit, which should promote dialogue and develop solutions for the challenging situation in the chemical industry.