Rebooting Hesse's Chemical and Pharmaceutical Industry: HessenChemie's Plea for Bold Moves
Chemical company HessenChemie advocates for bold actions to reform
The annual meeting of the Employers' Association HessenChemie, under the chairmanship of Oliver Coenenberg, sounded an alarming note: "The chemical and pharmaceutical industry has been in the doldrums for four years. Production has taken a nose dive by 16 percent since 2018 - that's a bloody disaster." The association is clamoring for fearless political reforms to rescue the industry's competitiveness.
Struggling for Breath: HessenChemie Urges Guts in Reforms
Inadequate reforms across the nation haven't been enough. Countrywide, the chemical industry is only running at 78% capacity. In Hesse, the beginning of 2025 was a snail's pace: production rose by a measly 0.2% in the first quarter while turnover edged up by 0.7%. Only the pharmaceutical sector is standing tall.
The new federal government has set the ball rolling with reforms, such as electricity tax, gas storage surcharge, investments, and digitization. However, the reduction in corporate tax is on its way, but tardily and incrementally. Overall, the initiatives waved by HessenChemie just don't cut it. Courageous structural reforms in pensions, care, and health aren't on the horizon. Substantial social security contributions weigh heavily on both companies and employees, threatening jobs.
In the latest round of wage negotiations, the industry was betting on an economic rebound. "The 4.85% wage hike in April now poses a monumental challenge given the grim reality," Coenenberg said. Many companies have stretched their economic limits. The association is also apprehensive about an impending attack on collective bargaining autonomy. The minimum wage goal of 15 euros touted by the SPD is undermining collective bargaining autonomy and fracturing social partnership.
A Training Record and Soaring Demand for More
At least 2024 was a golden year for training: nationwide, over 10,000 training spots were created in the chemical industry, including 1,708 in Hesse. Economic uncertainties, factory closures, and restructuring could imperil this positive trend in 2025. As vice-president of the Association of Hessian Employers' Associations (VhU), Coenenberg has teamed up on the new "Training Alliance" to boost practical career orientation and an up-to-date dual training system.
The managing director, Dirk Meyer, shared further insights into the association's work. Similarly, less regulation and more competitiveness are the targets of the chats HessenChemie is having with the EU social policy in Brussels, for example through streamlining the process of sending workers to other EU countries or sidestepping new reporting obligations for employers.
In the past business year, over 80 seminar events with more than 2,600 participants were held at the HessenChemie Academy to bolster members. "The rapid development and demand for artificial intelligence (AI) across all sectors is the hot topic that's generating a frenzy," Meyer stated.
Leadership Changes: A Dash of Fresh Blood
In tumultuous times, continuity is king. The board was mostly reaffirmed. Newly elected was Christian Scheller, Group Managing Director at Technoform, as successor to Pierre Schlosser, who stepped down for personal reasons. The board of HessenChemie comprises twelve honorary representatives of companies, elected for two years each.
Chairman of the Board:
Oliver Coenenberg, Sanofi-Aventis Deutschland GmbH
1st Deputy Chair:
Bettina Buschhoff, Procter & Gamble Service GmbH
2nd Deputy Chair:
Dr. Stefan Ruppert, B. Braun SE
Other Members:
Hans-Joerg Bergler, Merz Pharma GmbH & Co. KGaA
Matthias Burk, Merck KGaA
Richard Mark Engelhard, Engelhard Arzneimittel GmbH & Co. KG
Kerstin Oberhaus, Evonik Operations GmbH
Dr. Thorsten Posner, Clariant Verwaltungsgesellschaft mbH
Jürgen Rings, Pensionskasse der Mitarbeiter der Hoechst-Gruppe VvaG
Christian Scheller, Technoform Caprano + Brunnhofer GmbH
Thorsten Stute, HEWI Heinrich Wilke GmbH
Dr. Alexander Wagner, Infraserv GmbH & Co. Höchst KG
About HessenChemie
The employer association HessenChemie represents 310 member companies with 105,000 employees in the chemical, pharmaceutical, and plastics processing industries, as well as some industry-related service companies.
The chemical sector is aligning with broader sustainability goals, exemplified by strategies implemented by key industry societies like the Gesellschaft Deutscher Chemiker (GDCh). They've developed a “Sustainability Strategy 2030” focusing on sustainable science and innovation, supported by dedicated governance structures (e.g., Chief Sustainability Officer and Sustainability Commission). This approach intends to maintain future viability by integrating sustainable business practices and circular economy principles into the chemical and pharmaceutical sectors.
In summary, competitiveness in Hesse's chemical and pharmaceutical industry requires structural reforms focusing on fostering innovation ecosystems through collaborative R&D funding, embedding sustainability at the core of industry practices, and promoting the adoption of cutting-edge technologies to enhance efficiency and reduce environmental impact. These reforms aim to address competitiveness issues by improving the sector's innovation capacity, sustainability profile, and alignment with global market trends.
Financial Aid Required: HessenChemie's Call for Support in IndustryIn the current economic climate, Hesse's chemical and pharmaceutical industry needs financial aid. With the industry's competitiveness at stake, HessenChemie suggests bold reforms that focus on catalyzing innovation, embedding sustainability in practices, and adopting advanced technologies for improved efficiency and reduced environmental impact.
Reforming the Business Climate: A Key to SurvivalAs the industry grapples with various challenges, such as rising social security contributions and the 4.85% wage increase in April, HessenChemie calls for structural reforms in areas like pensions, care, and health, which would lighten the financial burden on both companies and employees, thereby preserving jobs. A supportive business climate is essential for the industry's survival.
