GERMAN CHEMICALS REGAIN SPARKLE

Abstract

Last week at its annual shareholders meeting, Henkel officials outlined how the firm intends to spin off its chemical business as the new company Cognis, effective Aug. 1. This is the latest in a round of restructuring that has preoccupied the German chemical industry over the past few years. The activity has reshaped an industry that had remained much the same for nearly 50 years, since it rebuilt from the rubble of World War II. The reshaping—even as companies come out of a miserable year and embark on a year that the German Chemical Industry Association (VCI) glumly predicts will be tough—is seen as a positive step toward enhancing the industry's international competitiveness. It also joins the country's increasing willingness to accept biotechnological research as a spur to renewed growth on the world chemical stage. Other major restructuring efforts in the chemical industry include: ...