FRANKFURT (dpa-AFX) - The German chemical industry has stopped its downward slide for the time being. In the first three months of this year, production fell short of the previous quarter's figure by only 0.9 percent, as reported by the German Chemical Industry Association (VCI) in Frankfurt on Tuesday. Despite a sharp rise in producer prices, sales of 58.5 billion euros were 8.2 percent down on the same period last year. A powerful recovery is not in sight, so the association continues to expect a 5 percent drop in production for the year as a whole.

The full extent of the energy crisis is becoming increasingly apparent, commented VCI President Markus Steilemann on the figures. Even though for many companies the energy and raw materials bill was lower than in the previous quarter, costs were still twice as high as in previous years, he said. "There is a great danger that investments and jobs in the energy-intensive chemical industry will increasingly move abroad," said the manager of plastics manufacturer Covestro. He added that action must now follow in the political arena. "And we need to do it quickly, unbureaucratically and in a targeted manner, for example through an industrial electricity price as a bridge to the future and to secure Germany as an industrial location."/ceb/DP/tih