3 ms·

I think the problem is that German energy is expensive compared to other countries. On top of that you have regulation and lack of subsidies making other place

I think the problem is that German energy is expensive compared to other countries. On top of that you have regulation and lack of subsidies making other places more attractive to produce in ie. the US, Eastern Europe or China.

skippyboxedhero 3y ago
Correct. BASF is investing heavily in China. Nothing tells you more about this problem than the most German of companies moving to China. BASF's largest plant in Germany was hooked up directly to Russian gas. Russian gas is now going to China. So are BASF. I don't think regulation or subsidies are to blame either. Eastern Europe is receiving heavy investment because they have costs for workers under control and can provide a more stable political environment. The problem with Germany specifically is that they papered over a lot of bad fundamentals in the early 2000s with cheap energy and very close relations with Russia.
- konschubert 3y ago
  Well, considering how great the Russia strategy of the German industry has worked out, I’m looking forward to bailing out basf
  - hulitu 3y ago
    > Russia strategy of the German industry Are you sure it's Russian ? /s
- throwaway4good 3y ago
  While the media focuses on China, Germany invests much more in the US. And if you summarize the investment in eastern europe, it is probably larger as well. The current government has famously green policies: Shutting down nuclear plants and perhaps have a willingness to accept heavy industry leaving Germany. It is however a very unpopular government so I don't know if those policies will hold long term.
  - nradov 3y ago
    There's nothing "green" about shutting down nuclear power plants.
    - herbst 3y ago
      There is nothing "green" about German politics either way
  - throwaway11460 3y ago
    > It is however a very unpopular government so I don't know if those policies will hold long term. Doesn't matter as the investor trust is destroyed.

skippyboxedhero 3y ago

Correct. BASF is investing heavily in China. Nothing tells you more about this problem than the most German of companies moving to China. BASF's largest plant in Germany was hooked up directly to Russian gas. Russian gas is now going to China. So are BASF. I don't think regulation or subsidies are to blame either. Eastern Europe is receiving heavy investment because they have costs for workers under control and can provide a more stable political environment. The problem with Germany specifically is that they papered over a lot of bad fundamentals in the early 2000s with cheap energy and very close relations with Russia.

konschubert 3y ago
Well, considering how great the Russia strategy of the German industry has worked out, I’m looking forward to bailing out basf
- hulitu 3y ago
  > Russia strategy of the German industry Are you sure it's Russian ? /s
throwaway4good 3y ago
While the media focuses on China, Germany invests much more in the US. And if you summarize the investment in eastern europe, it is probably larger as well. The current government has famously green policies: Shutting down nuclear plants and perhaps have a willingness to accept heavy industry leaving Germany. It is however a very unpopular government so I don't know if those policies will hold long term.
- nradov 3y ago
  There's nothing "green" about shutting down nuclear power plants.
  - herbst 3y ago
    There is nothing "green" about German politics either way
- throwaway11460 3y ago
  > It is however a very unpopular government so I don't know if those policies will hold long term. Doesn't matter as the investor trust is destroyed.