East witnesses non-stop construction of chemical manufacturing facilities - East experiences persistent chemical trade union activity, resulting in one construction site after another being impacted in the region.
Industrial Troubles Persist in Eastern Germany: Dow Chemical Plant and PCK Refinery Face Uncertainty
The Industrial Union of Mining, Chemistry, and Energy (IG BCE) has expressed concerns over potential production reductions by the US chemical giant Dow and the challenging industrial climate in Eastern Germany. The regional leader of the union, Stephanie Albrecht-Suliak, lamented a series of crises in Eastern Germany, stating that the newly-elected federal government does not have the luxury of a prolonged onboarding period to address these issues.
The union has advocated for measures to ensure the continued operation of the Dow plant, as its closure could have far-reaching implications for other companies within the central German chemical triangle. According to IG BCE, collaborative solutions are necessary to avoid job losses and secure the plant's future.
Dow is evaluating several sites in Europe, with potential impacts on facilities in Schkopau, Saxony-Anhalt, and Böhlen, Saxony. The company has cited reasons such as market overcapacity, increased imports, escalating energy, raw material, and CO2 costs, and excessive regulatory burdens for its review.
Albrecht-Suliak has also pressed for clarity regarding the ownership issue at the PCK oil refinery in Schwedt, northeastern Brandenburg. Uncertainty surrounding the refinery's operation hinders the necessary transformation, she said, noting that securing its continued operation with crude oil would also safeguard well-paid, collectively agreed jobs.
Brandenburg's Minister President Dietmar Woidke praised the resilience of PCK workers in light of the refinery's struggles since 2023. The refinery, once reliant on Russian oil, has had to seek alternative supply sources due to the attack on Ukraine.
Covering the federal states of Berlin, Brandenburg, Mecklenburg-Vorpommern, Saxony, and Saxony-Anhalt, the North-East district of IG BCE represents approximately 148,000 employees across more than 760 companies.
Eastern Germany's industrial sector has been grappling with high electricity costs, labor shortages, and bureaucratic obstacles, adversely affecting its competitiveness. As a result, some companies have temporarily halted production or even relocated abroad to less expensive locations in Eastern Europe or China. Lower business confidence in the new government's ability to revitalize the economy is also a contributing factor to the ongoing challenges in the region.
While government forums and policy proposals aim to alleviate the industrial crisis, significant hurdles remain. Specifically, concerns about support measures like subsidized electricity prices for industry facing challenges from the European Union have complicated quick relief for energy-intensive industries.
In conclusion, the industrial predicament in Eastern Germany, marked by instability at Dow and PCK, is underpinned by exorbitant energy costs, economic stagnation, and localized economic challenges. The IG BCE union is actively engaged in efforts to defend workers' interests during this difficult time, while the government and industry stakeholders continue to discuss solutions to restore prosperity to the region.
Community aid could be essential for the affected workers at the Dow plant and PCK refinery, considering the potential job losses and uncertainties in the Eastern German industrial sector. Vocational training programs, designed in collaboration with local businesses, could be a viable solution to enhance the employability of workers in other industries, given the ongoing struggles in the region's chemical and energy sectors.
