Germany's chemical industry is under mounting pressure as soaring energy prices threaten one of the country's most important industrial backbones. The sector, which supplies everything from plastics and fertilizers to pharmaceuticals and fuels, is highly energy‑intensive — relying heavily on natural gas, steam and electricity.
At the Leuna Chemical Park, Germany's largest integrated chemical site, more than 30 companies are grappling with sharply higher costs after the wars in Ukraine and Iran pushed gas prices to new highs. While the site's integrated model — sharing infrastructure, byproducts and waste heat — helps cushion the blow, not all producers are equally exposed.
Some firms are betting on renewable alternatives. UPM Biochemicals is investing billions in wood‑based biochemicals that could reduce dependence on fossil fuels and deliver long‑term cost advantages. Yet global competition remains fierce, and many companies struggle to pass higher costs on to customers. For now, thousands of jobs at Leuna are considered secure — but the industry's future hinges on energy prices and investment decisions.
This video summary was created by AI from the original DW script. It was edited by a journalist before publication.