Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleLanxess CEO forecasts a gradual recovery for the chemical industry by 2026, driven by German infrastructure funding and reduced economic uncertainty.
By Ozan Ergenay
(Reuters) -Speciality chemicals maker Lanxess said on Thursday it expects a gradual recovery for the chemical industry in 2026, due to the German government's proposed infrastructure programme and less economic uncertainty.
The German chemical sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues and an economic slowdown, and U.S. President Donald Trump's tariff roll-out has also added to the pressure.
"Tariff uncertainty will be here to stay, but at a lower level. The level of uncertainty should exist in the next year but not as much as we have experienced this year," CEO Matthias Zachert said on a conference call with analysts and journalists.
"In the second and third quarter, we have seen the maximum of uncertainty in the world because of this erratic tariff policy... but there is also some light at the end of the tunnel."
INFRASTRUCTURE FUND MAY BOOST INDUSTRY, BUT IT WILL TAKE TIME, CEO SAYS
The stimulus programme for the defense and industrial infrastructure in Germany will also have its bearing on the industry in 2026, Zachert said.
"Order books will see more orders accepted that will have some consequences on different products, such as flame retardants, screed coatings and pigments," he said.
However, he flagged that this will not change overnight, expecting a gradual increase without immediate effects at sight for now.
Germany has introduced a series of major fiscal measures to stimulate its economy, including a 500-billion-euro infrastructure fund and a 46-billion-euro tax relief package to support businesses through 2029.
"The new government has only been in the office since May and it's on the various levels like the federation, the federal states and the municipalities that this is going to be implemented and then it should bear fruit," Zachert added.
Some European chemicals and construction materials companies such as Evonik and Holcim also welcomed the fund earlier this month, expecting a boost in the region's chemical industry and construction market for the next year.
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
Infrastructure funding refers to financial resources allocated for the development and maintenance of essential facilities and systems, such as transportation, utilities, and public services, which support economic growth.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).
Corporate strategy is a comprehensive plan that outlines how a company will achieve its goals, allocate resources, and compete in the market to ensure long-term success.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital allocation and investment.
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