WDK: Germany rubber industry needs affordable energy, sensible chemicals regulation...

Frankfurt, Germany – This year's autumn meeting of the German rubber industry association (WDK) was mainly focused on the outllok for Germany as a location for production, amid “increasingly difficult” conditions.

Addressing the event, Frankfurt-based WDK's newly elected president Michael Klein said his priority was to help Germany maintain its postion as a leading industrial location.

“In order for [the country] to remain successful in international markets in the future, the local conditions must improve,” Klein told the 200 guests at the event.

As examples, he cited “affordable energy costs, sensible chemicals regulation and a significant reduction in bureaucracy” as conditions that determine the industry's performance.

Also addressing the event, WDK chief economist Michael Berthel touched on current developments in the market, adding that the German rubber industry had been “significantly affected” by recession.

The latest member survey, reported Berthel, showed that four out of five companies recorded year-on-year declines in sales in the first three quarters of 2023.

“The prospects for the next few months are not looking good either,” the WDK economist added.

The industry's domestic orders fell by an average of 7.1% year-on-year over the course of the year, while overseas orders fell by 5.1%.

In particular, in the tire sector, the dominant replacement market recorded “significant declines” in both passenger car and commercial tire demand.

In terms of raw materials, according to Berthel, “almost all prices” for the materials used in the rubber industry rose again at the beginning of the fourth quarter.

In conclusion, Berthel said both “politics and the process-chain must contribute to the survival of the internationally, technologically leading German rubber industry”.