Germany: Sales Up, Costs Too - C&EN Global Enterprise (ACS

Nov 6, 2010 - Part of this increase results from the hiring of more employees, but pay scales are also up about 9%. The the whole story. In Germany la...
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Germany: Sales Up, Costs Too ' T h e Big T h r e e " W e s t G e r m a n chemical c o m p a n i e s all show rising sales, but increased costs X H E BIG T H R E E " of the West German

chemical industry—BASF, Bayer, and Hoechst—all report increases in total sales for 1956. Profit figures have not been announced, b u t manufacturing costs have definitely risen.

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• Wages and salaries are higher. The amount paid out for these items was up 2 0 % at Hoechst, a n d 1 5 % at Bayer. Part of this increase results from the hiring of more employees, b u t pay scales are also up about 9 % . T h e

West Germany's Chemical "Big Three" Increased 1956 Sales You can keep a n y t h i n g from a com­ plete file of research reports to a 250volume library of all t h e basic litera­ t u r e in your field, right a t your finger tips—on microprint cards. As m a n y as 60 pages go on a single 3 χ 5 " card. Y o u r library is on t h e backs of i t s own catalog c a r d s ! You j u s t feed microprint cards into t h e K o d a g r a p h Microprint R e a d e r and read, whether for fast scanning or intent scrutiny. T h e screen is glareless green, tilted 11° because t h a t seems t o be t h e most comfortable angle. N o need t o d i m lights. Big enough so others can read along with you. Accepts cards u p t o 8 ^ χ 1 4 " size. Does this sound like t h e answer t o a library problem y o u have—or a library y o u ' d like t o αοςμπ-β?

Company Badische Anilin- & Soda-Fabrik Farbenfabriken Bayer A.G. Farbwerke Hoechst A.G. 1 DM = 24 cents

1956 Total Sales (in Million DM)

Per Cent Increase Over 1955

1498 1600 1481

10 11 16.6

• Costs for fuels, steel, raw materials, and wages have all gone u p . More coal h a d t o be imported from the U. S. Freight rates were u p for coal and crude oil. Prices of phosphate rock and pyrites—chief source of sulfur in Germany—rose too.

New Invest­ ment ( in Million DM) 300 230 240

Per cent Sales Exported 34.6 40 30.2

45-hour, five-day work week is becom­ ing standard in the West German chem­ ical industry. I n addition, more paid holidays are being given. German companies are quick to point out that a direct comparison of wages in Germany and t h e U. S. does n o t tell

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1957

t h e whole story. In Germany larger plants usually invest a considerable a m o u n t in housing for employees. Hoechst, for example, p u t u p 816 n e w dwelling units in 1956. This brings the total t o 9000, almost half of w h i c h h a v e been built since 1952. > E x p a n s i o n . A considerable effort h a s b e e n m a d e to lower costs b y mod­ ernizing plants. Of course, expansion still takes u p the bulk of investments. T h e s e have been high, although the biggest investor, BASF, predicts its n e w construction will b e somewhat less this year. Heavy chemicals, synthetic fibers, and titanium white pigment expansions have highlighted Bayer's 1956 expan­ sion program. Hoechst has h a d a n u m ­ ber of new installations come on stream. A n e w elemental phosphorus f u r n a c e at a subsidiary plant at Knapsack, near Cologne, is already producing 80 tons per day. Hoechst's polyethylene plant c a m e on stream in 1956, as d i d its pe­ troleum cracking, plant. T h e company is looking more to petrochemicals for raw materials. Shortage of electric p o w e r is making it difficult to expand production of carbide—the basic raw material for much of Hoechst's organic output. • E x p o r t s . "Competition in t h e world markets is nowhere so strong as it i s in the chemical sector," says Hoecrist's president Karl Winnacker. But ex­ ports, which are relatively more impor­ tant to European than to U. S. com­ panies, are managing to hold their own in all three companies. Fertilizers, however, h a v e faced a difficult market situation because of the large expan­ sion of U. S. capacity. While exports to other highly indus­ trialized countries in E u r o p e will re­ main quite important to West G e r m a n chemical companies, Winnacker thinks his company should b e able to increase its exports in many overseas areas. D E G U S S A , a producer of rare metals and also quite strong in the chemical field, mentions in its report t h a t com­ petition from Eastern Bloc countries has been a problem. Methanol de­ rivatives—formaldehyde, paraformalde­ hyde, hexamethylenetetramine, and pentaerythritol—have been sold by these countries at very low prices. D E G U S S A also reports total sales in­ crease for 1956 b u t states t h a t profits did not keep pace. W e s t German chemical c o m p a n i e s are continuing to p u t forth large re­ search efforts. These, coupled w i t h continuing expansion plans, m e a n t h a t W e s t Germany is in a strong position to> hold its newly regained place a t , or near, the top of the list of E u r o p e a n chemical producers.