German Chemical Firms See Output Cuts as War Crimps Supplies

Germany’s chemical industry warned shockwaves from the Iran war are beginning to ricochet through Europe’s largest economy, with a number of companies dialing down output as supply chains seize up and energy costs surge.

While costs rise, disruption to global shipping routes carrying vital raw materials and intermediate goods is now compounding the strain, Germany’s VCI chemical association said at its annual press conference in Frankfurt. The issues raise the specter of a fresh industrial slowdown in the continent’s industrial heartland.