Hesse’s chemical industry in crisis as jobs and production plummet
Hesse's chemical and pharmaceutical industry is facing a severe downturn, with employment and jobs figures declining. The industry demands urgent political action to restore competitiveness and prevent further job losses. Production in traditional chemical manufacturing has plummeted by roughly 30 percent since 2021, and the sector has been in recession for three years with no signs of recovery. Employment in the industry has decreased by another 1.5 percent, with half of the surveyed firms foreseeing further job cuts. Through August 2025, production fell by 2.6 percent and revenues by 2.4 percent. The outlook is bleak, with 89 percent of companies expecting production to stagnate or decline, 81 percent anticipating flat or falling revenues, and another 89 percent seeing no improvement in profits.
The chemical associations in Hesse demand lowering energy prices, ensuring a competitive emissions trading system, expanding infrastructure, and cutting red tape to restore the industry's competitiveness and prevent deindustrialization. The industry also calls for the reduction of bureaucracy and regulation, accelerating approval procedures, establishment of excellence centers at universities to promote startups, development of real laboratories and specialized innovation parks, and a reliable industry policy agenda for growth, jobs, and innovation.
Hesse's chemical and pharmaceutical industry is in crisis, with production and employment figures declining and a bleak outlook for the future. The industry demands urgent political action to restore competitiveness, prevent further job losses, and stimulate growth.
