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German Chemical Industry Faces Crisis as Energy Costs Threaten Key Plants

Dow Chemical considers closures in Schkopau and Böhlen, while Infraleuna warns of cascading job losses and supply chain disruptions without urgent energy policy reforms.

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Overview

  • Dow Chemical is evaluating the temporary shutdown or closure of its facilities in Schkopau and Böhlen due to unsustainable energy costs.
  • Infraleuna CEO Christof Günther cautions that shutting down the Böhlen cracker could lead to the loss of 500 direct jobs and thousands of ancillary roles.
  • Germany's energy transition away from coal and nuclear has left gaps in dispatchable capacity, driving up industrial electricity prices and straining competitiveness.
  • Günther calls for immediate policy changes, including reduced industrial electricity rates, regulatory relief, and the reinstatement of Russian pipeline gas to stabilize energy costs.
  • The potential closure of the Böhlen cracker threatens to disrupt the tightly integrated Mitteldeutsche Chemiedreieck, weakening regional value chains and economic stability.