FRANKFURT - The VCI association of German chemical companies such as BASF and Bayer warned that a no-deal Brexit would have "grave consequences" for European supply chains and called on Britain to move towards the European Union's position in divorce talks.

"The Chequers paper is still far from the European Commission's position. The British Government has to clearly show greater willingness to compromise in further negotiations. The EU cannot put the common market at risk," the group's managing director Utz Tillmann said in a statement, referring to Prime Minister Theresa May's so-called Chequers proposals.

The risk of a disorderly Brexit without an agreement would include disruptions to pan-European supply chains because chemicals registered with the European Chemicals Agency by British businesses could no longer cross the border without further administrative steps.

VCI also represents foreign companies, such as DowDuPont, LyondellBasell or Ineos, who operate sites in Germany, Europe's largest chemical producing nation.

(Reporting by Ludwig Burger Editing by Maria Sheahan) ((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters Messaging: ludwig.burger.thomsonreuters.com@reuters.net))