Federal Minister Katherina Reiche visits Leuna Chemical Site – InfraLeuna calls for clear direction

As part of her summer tour, Federal Minister for Economic Affairs and Energy Katherina Reiche visited the Leuna chemical site today. Accompanied by Dr. Reiner Haseloff, Minister President of Saxony-Anhalt, and Sven Schulze, Minister for Economic Affairs, Tourism, Agriculture, and Forestry of Saxony-Anhalt, the Federal Minister was welcomed by Dr. Christof Günther, Managing Director of the site operator InfraLeuna GmbH.

In a detailed joint discussion, she learned about the situation in the chemical industry and the latest developments at the Leuna chemical site. Once again, it became clear that the chemical industry is under enormous pressure.

Rising energy prices, growing international competitive pressure, and ambitious climate targets coupled with excessive regulatory burdens are affecting an industry that supplies raw materials for almost all sectors of the economy. For chemical sites, this means that they must create the conditions today for tomorrow's production—lower emissions, greater efficiency, but still competitive.

The conflict of objectives for the industry is coming to a head. This affects all major chemical sites in Germany and, most recently, the Central German Chemical Triangle. Here, Dow has decided to shut down production facilities at its sites in Schkopau (Saxony-Anhalt) and Böhlen (Saxony). Even before this decision, the situation was extremely tense. The general conditions have led to many chemical plants in the country currently operating at less than 70 percent capacity – in some cases significantly below that. The situation is also serious in Leuna, even if the site benefits in some areas from shutdowns elsewhere. Cost-cutting programs are also underway in Leuna, and uncertainty remains high.

The industry has now recorded its fifth consecutive quarter of declining employment—a development that the chemical industry has not experienced in the last 20 years.

Those responsible for the Leuna site warn that without industrial policy action, there is a risk of further silent dismantling of central industrial value creation in Germany.

“The chemical industry is systemically important – and at the same time has reached a critical point,” explains Dr. Christof Günther. “If we want to preserve key production chains, industrial value creation, and thus hundreds of thousands of jobs, decisive political action is needed now.” As the operator of the Leuna chemical site, one of the largest chemical sites in Germany, he is observing developments with great concern – but also with a desire to shape the future. Together with industry partners, the site is undergoing a consistent transformation: from fossil-based structures to sustainable, bio-based chemistry.

A flagship project in this development is the establishment of UPM Biochemicals, which the federal minister visited after her meeting with InfraLeuna. A globally unique biorefinery based on hardwood is currently being commissioned in Leuna—a project that not only reduces CO₂ emissions but also opens up a new value chain. In addition to the production of bio-based raw materials, capacities for research, development, and follow-up investments are being created.

“There is no shortage of innovation here. There is no lack of willingness to embrace this change. But change takes time, and above all, it requires the necessary capital. It requires an understanding that chemistry, that the chemical industry, is a very important sector for the Federal Republic of Germany,” explains Katherina Reiche.

But the path to the industrial future is not a sure-fire success. “If we really want this transformation, we have to make energy affordable, expand supply, reduce bureaucracy, facilitate investment, and make taxes competitive. Otherwise, we risk the migration of key industries from Germany,” warns Günther.

The federal minister's visit provided an opportunity to address these concerns directly and at the same time highlight the successes of the location's development.

With over 100 companies and around 15,000 jobs, the Leuna chemical site is an industrial cornerstone in eastern Germany.