German chemical industry is heading for a record year, as per latest half yearly reports of VCI. The industry's production and sales will set a new high in 2011, as predicted by German Chemical Industry Federation (VCI). VCI expects sales for German chemical companies to rise by 10% this year, higher than the 9% increase forecast in May, following strong performance by the industry during H1-2011 combined with higher-than-expected chemical prices. Production has risen by 6.5% y-o-y in H1-2011.
Growth is expected to continue in H2, but at a slower rate amid signs that the global economy has lost steam in recent months. Production is expected to grow by 5% this year.
The chemicals sector is also the nation's third-biggest industrial sector after the car and mechanical engineering industries.