FRANKFURT, Germany—The production conditions within the German chemicals industry are "rapidly deteriorating" due to the ongoing war in the Ukraine, the industrial association VCI has warned.
Citing a survey carried out earlier in March, VCI said 80 percent of responding companies are now "severely or very severely disrupted" in their production due to problems in the supply chains and high procurement costs.
While more than half of respondents expected higher sales in 2022 back in February, the recent survey shows that the majority is now "pessimistic" about the year, VCI said March 29.
"The picture has changed within a few weeks," it said.
The association warned of the serious repercussions of the sharply rising procurement prices and supply bottlenecks in energy and raw materials.
"The war in Ukraine has fundamentally exacerbated the problems on the supply side," VCI said.