Mideast war plunges German industry into crisis

"Our companies are currently operating in absolute crisis mode. The signals we are receiving, particularly from small and medium-sized enterprises, are in some cases dramatic. The longer the war lasts, the more severe the consequences will be."

"These price jumps are threatening for SKW Piesteritz if the prices for the main raw material cannot be passed on to customers. We are currently seeing what happens when we fail to protect our own basic chemicals industry in Germany."

"From chemicals to steel and cement, Europe's biggest economy is a major producer of industrial goods that require huge quantities of power to make, and Germany imports much of its energy. The price jumps triggered by the conflict and closure of key energy route the Strait of Hormuz have pushed oil above $100."

Germany's major industrial sectors, including chemicals, steel, and cement production, are experiencing severe economic strain from the Middle East conflict. Rising oil prices above $100 and closure of the Strait of Hormuz have triggered significant energy cost increases, directly impacting energy-dependent manufacturers. Supply chain disruptions create additional bottlenecks for essential raw materials. Companies like SKW Piesteritz, a nitrogen-based fertilizer producer, face production reductions despite increased global demand. Industry leaders report crisis-level conditions, particularly among small and medium-sized enterprises. The inability to pass increased costs to customers threatens profitability and operational viability across Germany's traditional manufacturing base.

Read at The Local Germany