German rubber industry calls for ‘greater consideration’ for SMEs

Frankfurt, Germany – The German rubber industry association (WDK) has called on the federal government to focus on small- and medium-sized enterprises (SMEs) to address ongoing challenges facing the industrial sector.

In a 19 Sept statement, WDK president Michael Klein said SMEs comprised “99% of companies” in Germany, forming the backbone of the German economy.

However, he said, the economic policies adopted in recent years “do not do justice” to the important role of the sector.

The federal government, Klein said, invites representatives of large industrial companies and the “usual three or four large umbrella associations” to negotiations, but leaves out SME suppliers.

In particular, the WDK leader stressed that suppliers should be involved in automotive summits, noting that four out of five rubber companies are active in the sector.

“Only in close exchange, including with smaller industrial sectors, can practical solutions be found for the current challenges facing small and medium-sized enterprises,” he said.

Some of the areas to be addressed in collaboration with SMEs include the “still unclear situation” regarding the introduction of the European deforestation regulation (EUDR).

The documents mandated by the EUDR, Klein said, require “a considerable effort within the supply chains”.

The associated increase in product costs will only affect European companies and “significantly worsen the competitiveness” of EU firms, he said.

"In addition, there is still no clear statement from the EU as to whether the EUDR will come into effect as planned at the end of December 2025,” Klein said.

Regardless, the EUDR has forced all companies to prepare for its enforcement, and according to the WDK, the German economy and its many SMEs are particularly affected.

Klein therefore, once again, urged the German government to advocate for significant simplifications of the EUDR.

As an example, he cited the "first-touch principle", which limits the scope of the EUDR to the first importer.

This, he said, “is the only way for European rubber value creation to have a chance on the global market in the future.”