Germany Chemical & Pharma Supply Chains at Risk of Disruption
Economy / Finance

Germany Chemical & Pharma Supply Chains at Risk of Disruption

Germany’s chemical industry association (VCI) has cautioned that escalating global conflicts could sever the nation’s access to vital chemical supply chains and pharmaceutical products.

Speaking to the Westdeutsche Allgemeine Zeitung, VCI Chief Executive Wolfgang Große Entrup stated the risk is “real” and relying on uninterrupted global market availability would be a “high-risk strategy”. He pointed to the experience during the COVID-19 pandemic as a demonstration of potential vulnerabilities.

The VCI chief executive urged Germany to proactively prepare for potential conflicts, suggesting the possibility of adverse alliances forming. He noted that almost all antibiotic production has already shifted to India and China due to economic factors, rendering domestic production largely unprofitable.

Große Entrup emphasized the importance of maintaining a domestic base for fundamental chemicals, highlighting their critical role across numerous industries – including automotive, electrical engineering, food production, energy and even defense – as a foundational component for broader industrial activity. He warned against lightly relinquishing these key domestic capabilities.