The chemical industry is one of the most important branches of the intermediate goods industry in Germany. Its state-of-the-art technology and emphasis on research have put it among the world’s leaders. This applies especially to its three principal corporations (Bayer, BASF and Hoechst). There are also a large number of successful small and medium-sized firms. The total work force is about 518,000, and turnover in 1 996 was about DM 216 billion. Roughly 43.3 percent of the industry’s output was exported.

The chemical industry is making considerable efforts to improve environmental protection and has in some areas assumed a pioneering role. Although chemical production has a long tradition in the new states, in many fields it is not yet competitive. In 1996, on average, about 32,000 people were still employed in chemical firms there. The aim of government policy has been to retain the core of the main chemical regions. This has been accomplished through privatization.