FRANKFURT, Dec. 10 (Xinhua) -- Total sales in Germany's chemical and pharmaceutical industry declined slightly this year, and the weakness is expected to persist into 2026, the German Chemical Industry Association (VCI) said here on Wednesday.

The industry faced a difficult year in 2025, with production and sales dropping by 0.5 percent and 1 percent respectively, VCI President Markus Steilemann told an annual press conference.

"Industry is sending out an SOS. 2025 was another very difficult year for our sector, and the outlook isn't getting any brighter," Steilemann said.

The chemical sector performed notably worse than the pharmaceutical segment. Chemical production fell by 2.5 percent and sales dropped by 3 percent, according to a VCI release. Capacity utilization remains at a historic low of 70 percent, and half of the companies surveyed reported insufficient orders.

In contrast, the pharmaceutical industry managed to grow in 2025, with production increasing by 3 percent and revenue rising by more than 4 percent.

A recent survey conducted by the association painted a gloomy picture for the industry. Up to 20 percent of companies plan to relocate or shut down production entirely, while one in ten intends to close whole sites. More than 40 percent expect further declines in domestic sales, and almost half anticipate a continued deterioration in earnings.

Expecting stagnation in the chemical and pharmaceutical sector in 2026, the VCI is urging Germany and the European Union to adopt measures to address the challenges facing the industry. The association has put forward a six-point proposal aimed at safeguarding supply, reducing costs, boosting investment, and enhancing innovation to maintain competitiveness.

The VCI is Europe's largest association for the chemical and pharmaceutical industries. With 23 specialized associations and seven regional associations, it represents the interests of around 2,300 companies. ■