Sparking a Political Fire: Chemistry CEO's Call for Attention
Strengthening Political Involvement in Chemistry is Key for Progression - Domo Executive Emphesizes More Political Attention to Chemical Industry
In the dust of Berlin's political shift, there's a firm belief that chemistry deserves a stronger spotlight. Vedran Kujundzic, the sales chief of the Belgian company leading the chemical plant Domo in Leuna, doesn't mince words. "We dare to dream of a stronger focus on chemistry," he declares. This industry, backed by around 400,000 jobs in the heartland of Germany, stands as a crucial economic backbone and the foundation for countless value chains.
Kujundzic turns his criticism towards the continent's energetic costs looming high above the international average. The prices of natural gas? Four to five times pricier than the US market, and significantly steeper than other global regions. He champions a balanced energy mix, one that doesn't outright dismiss imports from Russia as long as geopolitical winds allow it. Yet, he stresses the importance of steering clear from the one-sided dependencies of old, which took a vicious hit following the attack on Ukraine.
Stormy Waters Ahead for Domo Group
The waters around the Domo Group are currently choppy, according to Kujundzic. "We're weathering a perfect storm," he explains. The main force here is the ailing automotive sector - a key industry player to Domo. Despite a positive first half of 2024, thanks to supply bottlenecks sparking a stronger demand for European production, the second half saw a deluge of price pressure from Chinese imports. Yet, the group remains steadfast in Leuna.
Press Pause: The Deliberate Standstill
Currently, a planned three-week production halt is underway at the Domo Group's Leuna facility. This "turnaround" is a carefully planned event carried out every 24 months. Its purpose? To ensure the safety, quality, and long-term viability of production by undertaking maintenance, cleaning, and renovation works.
- Leuna
- Federal Government
- Focus
- Berlin
- CEO
- Chemical Plant
- Change of Government
- Ukraine
- Germany
- Europe
With continually evolving circumstances affecting the domain of chemical production, it's worth noting that companies like BASF and Evonik have demonstrated resilience. Although each faces their own unique challenges, they forge ahead, adapting to the often volatile landscape.
- Vedran Kujundzic, the CEO of a Belgian company leading a chemical plant in Leuna, Germany, is urging EC countries to pay more attention to the employment policy within the chemical industry, as it is a crucial economic backbone with around 400,000 jobs in the heartland of Germany.
- Despite the high costs of energy, particularly natural gas, being four to five times pricier than the US market and significantly steeper than other global regions, Kujundzic advocates for a balanced energy mix, ensuring geopolitical considerations are taken into account without outright dismissing imports from Russia.
- The Domo Group, which includes the Leuna chemical plant, is grappling with a "perfect storm" in its business, as the ailing automotive sector, a key industry player to Domo, experiences a deluge of price pressure from Chinese imports despite a positive first half of 2024.
- The Domo Group's Leuna facility is currently undergoing a three-week production halt, referred to as a "turnaround," designed to ensure the safety, quality, and long-term viability of production by undertaking maintenance, cleaning, and renovation works.
- Amidst the ever-changing landscape of chemical production, companies like BASF and Evonik, despite their individual unique challenges, have shown resilience and adaptability, with a focus on complying with the government's expectations in Berlin, economic policies in Germany and Europe, and navigating the impact of the change of government and geopolitical events like the crisis in Ukraine.
