Dräger CEO Stefan Dräger sees the German chemical industry in a deep structural crisis

VCI figures confirm Dräger's diagnosis

Dräger was particularly blunt with regard to energy prices and bureaucracy. Both factors are weighing massively on the competitiveness of companies in Germany and Europe. Without a reversal of trends in location conditions, further job cuts are looming, he warned.

As an example, Dräger cited the Ludwigshafen chemical giant BASF, which had announced restructurings in recent years. Such steps show that even large, traditional corporations are suffering under the pressure of current framework conditions and must adjust their capacities, he said.

The mechanical engineering entrepreneur emphasized that the crisis is not arriving loudly like a crash, but rather quietly and gradually. He chose this wording deliberately in order to draw attention to the gradual loss of industrial substance that often gets lost in public perception.

BASF as a symbol of structural change

Specifically, Dräger called for a reliable energy policy, faster approval procedures, and a fundamental relief for companies. Only in this way could it be prevented that value creation and know-how permanently migrate to other parts of the world, he said to those present.

The VCI had previously reported that the chemical and pharmaceutical industry in Germany is suffering from weak demand, high energy costs, and hesitant willingness to invest. The association sees this as a dangerous trend with consequences for the entire industrial value chain.

Dräger's own company is also closely intertwined with the chemical industry. As a mechanical engineering firm, the Lübeck-based company supplies, among other things, safety technology and components used in chemical plants worldwide. A lasting decline of the chemical industry would therefore have direct effects on orders and employment in the SME sector.

Consequences for mechanical engineering

Observers see Dräger's warnings as further evidence that the industrial base in Germany is under pressure. The combination of high energy prices, regulatory hurdles, and a weak global economy is weighing especially on energy-intensive sectors such as chemicals.

Industry experts expect that the political debate over location conditions and industrial policy will intensify in the coming months. The upcoming half-year results of the sector are likely to show whether this is a temporary dip or the beginning of a longer-term decline.