WDK rings alarm bells for German rubber industry amid weak 2025 results

Frankfurt, Germany – The German rubber industry association (WDK) has called for urgent action to support the local rubber sector following weak 2025 results.

According to key statistical data published by WDK, rubber production fell 6.4% year-on-year to 1.03 million tonnes in 2025, marking the fourth year of manufacturing decline in the industry.

Tire production fell 8.9% year-on-year to 410,000 tonnes while the manufacture of technical rubber goods dropped 4.6% to 620,000 tonnes, reported WDK on 20 Feb.

Overall sales declined 8% year-on-year to €10.5 billion, with tires down 9.8% at €6.2 billion and rubber goods down 5.2% at €4.2 billion.

Capacity utilisation rates grew overall by 0.9% to 77.3%, with tire plants reporting a 2.3% decline to an average of 77.5% while average utilisation among rubber goods makers grew 4.3% to 77.1%.

Investment in the industry rose by 2.7% to €760 million compared to 2024, with tire investment flat at €430 million and rubber goods investment up 6.5% to €330 million.

Employment levels fell across both segments, with tires reporting a 7.1% decline in employment to 17,100 people and rubber goods falling 2.5% to 43,500 people.

Overall, employment fell 3.8% year-on-year to 60,600 people, marking the fifth consecutive year of decline.

Commenting on the results, WDK said the rubber industry in Germany was “not getting its act together.”

Demand for “the previously highly sought-after rubber products ‘Made in Germany’ is weak both at home and abroad,” said WDK, warning that even the local German market is seeing “unprecedented market share shifts.”

According to WDK chief economist Michael Berthel, contracts awarded for industrial rubber products are currently based “almost exclusively on cost factors” as opposed to quality.

Amid “fierce international cost competition,” he said, medium-sized German quality providers are faced with overwhelming “location-specific” challenges such as high energy costs, bureaucracy, tax and labour costs.

Companies, therefore, are “forced” to shift investment abroad to avoid the cost burdens despite their roots in Germany.

Also commenting, WDK president Michael Klein “urgently called” on the federal government to act.

"What we need now is clear political support to stimulate demand and improve German and European competitiveness,” said Klein, adding that the action should be taken immediately.

The German rubber industry, he said, is “irreplaceable” in the system-critical areas of health, infrastructure, safety and mobility.

“It must not be lost with our eyes open," Klein warned.