German chemical firms see 'significant' blows ahead from virus

Germany's powerful chemical sector can expect significant blows to activity from to the coronavirus pandemic this year, an industry federation warned Wednesday.

The VCI chemical makers' group said it "expects a significant reduction in production and revenues in the chemical and pharmaceutical industry in Germany," as it published a report on first-quarter activity.

Some 75 percent of member firms are expecting their European revenues to fall.

In January-March, the sector "did not feel the full force of the coronavirus pandemic", as demand for certain pharmaceuticals, "various hygiene products" and packaging was high.

Revenues increased 0.6 percent quarter-on-quarter, to 49.5 billion euros ($54.3 billion), with rising sales within Germany and a smaller retreat in exports.

But as the pandemic spread from Asia to Europe in March, the chemical industry -- upstream from many manufacturing activities -- was also increasingly affected.

Now "falling orders, disrupted supply chains and lacking transport capacity are all posing problems for companies," the VCI said.

With companies ranging from global giants Bayer and BASF to tiny firms, the chemical industry is Germany's third-largest by revenue after cars and machine tools, employing over 460,000 people and boasting revenues of almost 200 billion euros in 2019.