German chemist Otto Bayer did not know what to do with polyurethane foam when he invented it in 1937. Today the chemical is omnipresent in household appliances and cars, and is at the heart of Abu Dhabi state oil group Adnoc’s effort to seal Europe’s biggest takeover deal this year.
The target company, Covestro, is a jewel of German industry. Spun out of pharmaceuticals-to-chemicals conglomerate Bayer in 2015, its Leverkusen headquarters sit in the industrial heartland of North Rhine-Westphalia — a state brimming with potential customers for its products.
But times are not as good as they once were. High energy prices and sluggish consumer demand have hit Germany’s manufacturers, and their suppliers, including Covestro, are feeling the squeeze.
“Europe is getting less and less competitive, especially Germany,” chief executive Markus Steilemann told the Financial Times at Covestro’s most recent earnings, when the company narrowed its full-year profit outlook.
The chemicals industry lobby group that Steilemann chairs has warned that Europe’s largest economy is deindustrialising and urgently needs support.
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