The China Mail - German 'chemical town' fears impact of industrial decline

USD -
AED 3.672504
AFN 62.503991
ALL 82.182944
AMD 369.50071
ANG 1.79046
AOA 918.000367
ARS 1393.261257
AUD 1.398993
AWG 1.80125
AZN 1.70397
BAM 1.682192
BBD 2.018062
BDT 122.986281
BGN 1.66992
BHD 0.37793
BIF 2983.270976
BMD 1
BND 1.280867
BOB 6.923838
BRL 5.056804
BSD 1.001935
BTN 96.102868
BWP 14.172795
BYN 2.788285
BYR 19600
BZD 2.015138
CAD 1.37555
CDF 2247.50392
CHF 0.78696
CLF 0.023076
CLP 898.223885
CNY 6.809904
CNH 6.81438
COP 3789.962585
CRC 454.478992
CUC 1
CUP 26.5
CVE 94.839376
CZK 20.916604
DJF 178.419989
DKK 6.428304
DOP 59.863243
DZD 132.734701
EGP 52.834473
ERN 15
ETB 156.447426
EUR 0.860404
FJD 2.20415
FKP 0.750232
GBP 0.750272
GEL 2.680391
GGP 0.750232
GHS 11.457446
GIP 0.750232
GMD 72.503851
GNF 8785.963102
GTQ 7.643745
GYD 209.624565
HKD 7.83285
HNL 26.646884
HRK 6.481104
HTG 131.183073
HUF 311.210388
IDR 17602.95
ILS 2.91944
IMP 0.750232
INR 95.970504
IQD 1312.604825
IRR 1319000.000352
ISK 123.530386
JEP 0.750232
JMD 158.319357
JOD 0.70904
JPY 158.695504
KES 129.153228
KGS 87.450384
KHR 4020.126435
KMF 424.00035
KPW 899.989966
KRW 1498.055039
KWD 0.30864
KYD 0.834989
KZT 470.382316
LAK 21973.938847
LBP 89725.196749
LKR 329.144626
LRD 183.356986
LSL 16.597084
LTL 2.95274
LVL 0.60489
LYD 6.36219
MAD 9.236056
MDL 17.333677
MGA 4170.644648
MKD 53.021116
MMK 2100.069852
MNT 3578.56838
MOP 8.08128
MRU 40.218466
MUR 47.170378
MVR 15.410378
MWK 1737.410227
MXN 17.336604
MYR 3.949504
MZN 63.903729
NAD 16.597084
NGN 1370.490377
NIO 36.872662
NOK 9.304604
NPR 153.764245
NZD 1.70838
OMR 0.384019
PAB 1.001935
PEN 3.434998
PGK 4.365028
PHP 61.608038
PKR 279.069969
PLN 3.65375
PYG 6105.878811
QAR 3.652432
RON 4.436104
RSD 100.967617
RUB 72.76059
RWF 1465.70335
SAR 3.788656
SBD 8.016322
SCR 13.589038
SDG 600.503676
SEK 9.450804
SGD 1.280704
SHP 0.746601
SLE 24.603667
SLL 20969.502105
SOS 572.657292
SRD 37.453038
STD 20697.981008
STN 21.07255
SVC 8.767041
SYP 110.658507
SZL 16.600009
THB 32.605038
TJS 9.348299
TMT 3.51
TND 2.932525
TOP 2.40776
TRY 45.522504
TTD 6.800843
TWD 31.576504
TZS 2615.146433
UAH 44.241431
UGX 3762.095214
UYU 40.132456
UZS 11998.451813
VES 510.148815
VND 26355
VUV 118.113327
WST 2.706364
XAF 564.191287
XAG 0.01316
XAU 0.00022
XCD 2.70255
XCG 1.805789
XDR 0.701673
XOF 564.191287
XPF 102.576012
YER 238.603589
ZAR 16.68789
ZMK 9001.203584
ZMW 18.862082
ZWL 321.999592
  • RBGPF

    0.8900

    61.68

    +1.44%

  • RELX

    0.9400

    32.4

    +2.9%

  • BCE

    -0.4000

    23.79

    -1.68%

  • AZN

    -3.3800

    181.58

    -1.86%

  • RIO

    -5.9000

    103.69

    -5.69%

  • GSK

    -0.8289

    49.67

    -1.67%

  • VOD

    -0.8000

    14.68

    -5.45%

  • RYCEF

    -0.8300

    15.1

    -5.5%

  • BTI

    -1.6100

    65.09

    -2.47%

  • CMSC

    -0.1150

    22.98

    -0.5%

  • NGG

    -6.7900

    80.64

    -8.42%

  • CMSD

    -0.4500

    23.05

    -1.95%

  • BCC

    -3.4100

    65.99

    -5.17%

  • JRI

    -0.5565

    12.45

    -4.47%

  • BP

    0.7292

    44.35

    +1.64%

German 'chemical town' fears impact of industrial decline
German 'chemical town' fears impact of industrial decline / Photo: © AFP

German 'chemical town' fears impact of industrial decline

Germany's industrial decline is taking a painful toll on communities that have long relied on local manufacturing titans for jobs, prosperity and a sense of a secure future.

Text size:

Among the places affected by the downturn is Ludwigshafen, a company town of chemical giant BASF, which has shed thousands of jobs while shifting its focus to China.

"The mood is obviously not good," Sinischa Horvat, chairman of BASF's works council, which represents staff interests, told AFP during a visit to the city of about 175,000 people.

"The entire market is currently so weak. When you watch the news, you hardly hear any positive messages."

BASF is among Germany's manufacturing heavyweights in sectors ranging from autos to steel and factory equipment that have been cutting back in their domestic markets.

They are battling surging energy costs, fierce competition from China, and weak demand at a time when Europe's biggest economy is mired in a long stagnation.

Some 2,500 jobs have been axed since 2022 in Ludwigshafen, which is dominated by sprawling chemical plants that stretch along the river Rhine, and more cuts are set to come.

A recent decision to sell off thousands of company-owned apartments, many occupied by current and former workers, has added to unease.

"The sale of these apartments sends a signal to the city and to the people who live here and, in some cases, work at BASF -- BASF is scaling back its operations," Patrick Thiel, who lives in one of the apartments and works at the firm, told AFP.

"There is growing concern that this won't stop at the apartments but will also affect the main plant," added the 29-year-old, who also ran as a candidate in recent local polls for far-left party Die Linke.

- China push -

Horvat said having BASF staff in the properties helped created a "symbiosis" between company and community.

"This has fostered an understanding of chemistry and shaped the relationship with BASF in the city," he said.

BASF -- a supplier of base inputs to the agricultural, automotive and pharmaceutical sectors -- says the proceeds will go to bolstering its core businesses, but acknowledged that the sale had "raised uncertainties".

A company spokeswoman however insisted that it would handle the sale responsibly, adding: "No one has to fear losing their home."

"We will continue to see ourselves as an integral part of the local community in the future," she said.

Underlining its commitment to Ludwigshafen, where the group has over 30,000 employees -- around a third of its global workforce -- BASF has agreed to hold off on compulsory redundancies there until at least 2028 and continue investing.

But as it cuts back at home, the world's biggest chemical firm is investing heavily overseas, last month inaugurating a vast 8.7 billion euro ($10 billion) complex in China, its biggest ever single investment project.

It insists that building up its presence in China, the world's biggest chemical market, is crucial.

- Job losses -

BASF is far from the only German company suffering.

Last year industrial companies cut 124,000 jobs, around double the figure in 2024, with hefty losses in particular found in the struggling auto sector, a study by consultancy EY showed.

Germany's manufacturing sector shrunk to a share of 19.5 percent of the country's economy in 2025, according to official figures -- its lowest level for many years.

"The loss of industrial jobs in Germany has accelerated in the past two years," Marcel Fratzscher, president of the DIW economic institute told AFP.

"Companies that used to be the pride of Germany are suffering."

Areas that have already suffered industrial job losses see greater social problems and offer fertile ground for fringe parties, such as the far-right Alternative or Germany (AfD), to pick up support, experts warn.

Still, Fratzscher said that Germany had undergone economic upheavals before, and urged politicians and companies to try to ensure the economy emerges stronger.

The current economic transformation should be seen "as an opportunity to move into sectors that have better margins, better jobs," he said.

"The biggest mistake we can make is to try to cement the status quo, to keep all companies exactly the same. That would lead to a much bigger deindustrialisation."

B.Carter--ThChM