German rubber industry reports continuing decline in production

Frankfurt, Germany – The WDK has warned that Germany’s rubber industry is facing a severe decline as production, employment and sales all fell in the first half of 2026.

In a 3 Sept statement, German rubber industry association called on the government to urgently implement reforms to strengthen the country’s industrial competitiveness, including measures to reduce energy costs and bureaucracy and strengthen domestic markets.

The warning came as German rubber industry production fell 5.4% year-on-year to 530,000 tonnes in the first half, while employment declined 5.0% to 57,200.

Industry sales fell 4.1% to €5.20 billion, according to WDK data, reflecting €3.05 billion in domestic sales, down 4.7% year-on-year, and €2.15 billion in foreign sales, down 3.2%.

Within the tire sector, production fell 9.1% to 200,000 tonnes while the manufacture of technical elastomer products (TEE) declined 2.9% to 330,000 tonnes

Tire sales for the first six months of the year dropped 7.9% year-on-year to €1.76 billion, with domestic sales down 7.1% to €1.30 billion and foreign sales down 9.8% to €460 million.

Sales of general rubber goods (GRG) fell 2.0% to €3.44 billion.

Here, automotive GRG sales decreased 4.8% to €1.57 billion, while GRG sales for ‘other applications’ increased 0.5% to €1.87 billion.

Employment within the tire segment dropped 8.3% year-on-year to 16,500 while TEE saw workforce declined by 3.6% to 40,700.

WDK president Michael Klein said the industry was under pressure from “internationally non-competitive energy costs”, excessive bureaucracy and growing competition from outside Europe.

Klein warned that the decline posed a risk to Germany and Europe’s ability to maintain domestic production in strategically important areas.

“This indispensable key industry for Germany and Europe is in free fall,” he said.

This, Klein stressed, "means that self-sufficiency in such strategic sectors as healthcare, security, mobility, energy, drinking water supply, infrastructure, defence and aerospace is acutely at risk.”

The WDK president called for the immediate suspension or abolition of reporting requirements, measures to reduce energy costs, including the abolition of Germany’s national emissions trading system, and steps to strengthen domestic markets.

“Without a level playing field in international competition, the industry has no future in Germany,” he said.

WDK chief economist Michael Berthel also noted that the industry latest figures confirmed the downward trend.

“Almost all indicators are in the red… If the conditions do not improve quickly, the lights will go out – permanently – in more and more German rubber industry production halls,” Berthel warned.