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Germany's chemicals industry, Europe's biggest, is beginning to feel the pinch from delayed shipments via the Red Sea, becoming the latest industry to warn of supply disruptions that have forced some companies to curb production.
Crucial Asian imports to Europe ranging from car parts and engineering equipment to chemicals and toys are recently taking longer to arrive as container shippers have diverted vessels around Africa and away from the Red Sea and Suez Canal, following attacks by Yemen's Houthis.
While German industry has got used to supply disruptions in the wake of the pandemic and Ukraine war, the impact of decreased traffic via the trade artery is starting to show, with Tesla's Berlin factory the most prominent victim so far.
Germany's chemicals sector, the country's third-biggest industry after cars and engineering with annual sales of around 260 billion euros ($282 billion), relies on Asia for around a third of its imports from outside Europe.
"My procurement department is currently working three times as hard to get something," mentoned Martina Nighswonger, CEO and owner of Gechem GmbH & Co KG, which mixes and bottles chemicals for big industrial clients.
As a result of the delays, Gechem, which makes annual sales in the double-digit millions of euros, has lowered production of dishwasher and toilet tablets because it can't get enough trisodium citrate as well as sulfamic and citric acid.
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