Chemicals is Germany39;s No.3 industry with 260 bln euros in sales
Companies face supply delays, higher freight costs
Challenge comes on top of higher energy, materials costs

FRANKFURT, Jan 22 Reuters Germany39;s chemicals sector, Europe39;s largest, is starting 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 currently taking longer to arrive as container shippers have diverted vessels around Africa and away from the Red Sea and Suez Canal, following attacks by Yemen39;s Houthis.

While German industry has got used to supply disruptions in the wake of the pandemic and Ukraine war, the impact of reduced traffic via the trade artery is starting to show, with Tesla39;s Berlin factory the most prominent victim so far.

Germany39;s chemicals sector, the country39;s thirdbiggest 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, said 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 doubledigit millions of euros,…