(Corrects CEO quotes in paragraphs 4 and 6 following mistranslation by company interpreter)
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. U.S. President Donald Trump’s tariff roll-out has 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.
“There is no longer total escalation, but rather a levelling off… This means that uncertainty regarding the customs situation should still exist in 2026, but not to the same extent as we saw in 2025.”
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.
“We assume that the special fund for defense and infrastructure decided upon in German will also have an impact on industry in the course of 2026 and thus fill order books,” he said.
However, he flagged that this will not change overnight, expecting a gradual increase without immediate effects 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)
