Saxony-Anhalt – Dynamo of the Central German Chemical Industry

Advanced formula: with an annual turnover of 7.5 billion euros and more than 15.000 employees, the chemical industry is a driving force in Saxony-Anhalt.

The development of the German federal state is remarkable: Saxony-Anhalt is the centre of the German chemical industry and its progression is above national average – despite the European financial turmoil and economic crisis. With 5.5 billion euros, the turnover of the first nine months of 2011 was about one quarter higher than in the previous year. With a growth of 16% to 15.400 employees in the industry, the number of employees rose superiorly as well. The employers’ association ‘Nordostchemie’ estimates the total annual turnover of the chemical industry in Saxony-Anhalt to be 7.5 billion euros. Thus, the chemical industry reaches a turnover increase of about 30% and therefore distinguishes itself as the industry with the highest turnover growth.

The German federal State Saxony-Anhalt is located in the centre of Europe with excellent access to the emerging East European markets and to the well developed markets in Western Europe. Saxony-Anhalt is one of the world’s most modern and competitive locations and has evolved into one of the top locations for business in Europe. Its tradition of chemical and plastics industry is not the only point in favour. Italy’s Manuli Stretch, Europe’s largest manufacturer of stretch film, expanded its facility in the Dow Value Park in Schkopau recently. CEO Massimo Moroni credited the investment to “good experiences with the local employees” and being able to “find specialist companies in the surrounding region who can quickly meet our high expectations.” Other global players such as Dow Chemical, Total Raffinerie Mitteldeutschland, Bayer Bitterfeld, Domo, Linde or Hi-Bis are located there as well.

The state and its entrepreneurs especially benefit from five chemical parks. The industry obtains its support from a many-layered research landscape, including two universities, eight universities of applied science and twelve research institutes, as well as networks and cluster initiatives. Universities and external research establishments get the transfer of innovation started, along with the development of new products and procedures. The network of Central German chemical locations, the Central European Chemical Network (CeChemNet), promotes the development of new industrial sectors, as well as the concept of industrial parks.

Chemical Parks in Saxony-Anhalt: Both Birthplace and Pioneer

The chemical parks in Central Germany are pioneers in the global reorganization process of the chemical industry. After the German reunification, more than 17 billion euros have been invested in the restructuring and modernization of infrastructure and production plants at Saxony-Anhalt’s large chemical sites in Leuna, Bitterfeld Wolfen, Schkopau and Zeitz as well as in Böhlen (Saxony) and in Schwarzheide (Brandenburg). Chemical parks belong to the most important generators for the regional economic development today.

Excellent supply and removal conditions and functioning composites in the region’s chemical parks give the area’s locations numerous advantages: Through modern pipelines, various raw materials are transported and made readily available. Companies benefit from the merits of closed material cycles and synergies. Safety and environmental protection are on par with state-of-the-art technology.

Saxony-Anhalt – We Grow Chemistry in Parks

Many companies are still relying on traditional trade relations between the region and states in Central and Eastern Europe – if nothing else, due to its centrality in Europe. The industrial sector is on the up. The acceptance is still higher than elsewhere – an advantage for domiciled companies. They also benefit from highly qualified and skilled staff. In order to ensure this continues in the future, there is extensive cooperation between companies, and schools, technical colleges and universities. The success is evident in the high number of apprenticeships.

The drivers of this successful development are established network structures that are substantially supported by the state government of Saxony-Anhalt. In this way the network of the Central German Chemistry Locations CeChemNet and the Chemistry/Plastics Cluster of Central Germany combine the interests of powerful big industry as well as the innovative small and medium-sized companies. Innovations are increasingly becoming a determining factor – illustrated by the considerable promotion of the construction and expansion of research infrastructure by the Saxony-Anhalt state government.

Major investments of 2011

  • From Belgium, Domo Capro Leuna, a manufacturer of chemicals and polymers has invested 20 million € to boost capacity at its caprolactam and nylon plant in Leuna as well as an additional 30 million € for a storage site there.
  • Italy’s Manuli Stretch, Europe’s largest manufacturer of stretch film, expands its facility in the Dow Value Park in Schkopau. The company will invest 21 million € by 2012 to erect two new plants and a production hall.
  • US-American Styron has expanded its synthetic rubber production facilities at Dow Value Park as well, investing 91 million € and creating 30 new jobs.
  • Lanxess has opened a new chemical plant for water technology in Bitterfeld, investing 300 million € and generating 200 new jobs.

Incentives for investors – your advantages in Saxony-Anhalt

  • Infrastructure: excellent transport and logistics infrastructure
  • Market Access: proximity to the growing European markets and to the well established Western markets
  • Competence: highly qualified, motivated workforce
  • Productivity: high labour productivity
  • Flexibility: fast and easy approval procedures
  • Investment Security: stable political and legal system
  • Investment Incentives: excellent range of incentives
  • Development: innovative and varied research environment
  • Dynamic Area: Saxony-Anhalt receives the most FDI in Eastern Germany

IMG Investment and Marketing Corporation Saxony-Anhalt
The Economic Development Agency of the German Federal State of Saxony-Anhalt
Dr Carlhans Uhle
Managing Director

Am Alten Theater 6
39104 Magdeburg

Tel.: +49 (0)391 568 99 0
Fax: +49 (0)391 568 99 50

North Rhine-Westphalia – Germany’s Metropolitan Region with Excellent Business Opportunities

Germany – Europe’s leading economic nation – remains one of the most important markets for sales and investment. Around 82 million consumers live here, with a combined purchasing power of 1,558.1 billion euros. Germany accounts for 20 percent of Europe’s total economic output – more than any other European nation. Such a market environment offers most suitable investment opportunities for business development. The state of North Rhine-Westphalia (NRW) provides an excellent platform for unlocking this potential.

Read More

Imatra Region – Russia in your Reach

Imatra Rapid's show and Power plant

The Imatra region is located in South-East Finland, right on the Russian-Finnish border. Only in 230 km from St. Petersburg and the same distance from Helsinki means Imatra is in an excellent position for business. Good and fast-developing communication between Europe and Russia is now a reality in Imatra. At the flexible and efficient international border crossing, the Imatra-Svetogorsk road and railway cross the border at the same place. Imatra’s location right on the EU-Russian border, neighbouring with Svetogorsk, adds an additional touch of colour to everyday life. Going to work, shopping or just visiting over the border is a part of the region’s daily life.

Read More

Seinäjoki – How to make Friends and Influence people

It might be the depths of winter right now, but Finland’s economy is on fire. The government’s business-friendly attitude is hugely appealing to investors. Consequently, while other parts of Europe are in a slump, Finland is basking in its own self-generating glow.

Sure, red tape is minimal, running costs are low – all the things carpet-bagging investors like. But Finland’s government learned crucial lessons the hard way from previous downturns. Namely, being opposed to selling yourself short, the quickest and most secure route to success is through meaningful investment in your citizens.

Read More

The Big Frieze – heating up the art market

The dealer on the stand at Casey Kaplan can barely contain her joy. “The experience has been overwhelmingly positive,” she gushes. “We’ve sold everything. We’ve sold to museums, foundations, new collectors – we’re very happy.”

Read More

Shooting from the Hip – Silvio Berlusconi

Estimated to be worth $6.5bn (£4.4bn) by US business magazine Forbes, Silvio Berlusconi doesn’t care who he upsets. He might have limitless lines of credit, but his controversial lines of conversation are pretty much limitless, too.

Read More

Airbus unveils the future of flying – 2050

The Vitalising Zone by Day: Vitalising Zone at the front of the aircraft. An intelligent cabin membrane can become transparent to give passengers open panoramic views.

A revolutionary design harnessing the efficiency of bird bone will create a bionic structure cabin for the air traveller in 2050. The ground breaking concept in cabin design will combine key structural strength with an "intelligent" cabin wall membrane that controls air temperature and the ability to transform solid walls and ceilings into open and transparent panoramic passenger views.

Read More

Interview with Gerhard Gizler, CEO of Niedersachsen Global GmbH

Photo: Agentur für WiFö Cuxhaven

1.) Niedersachsen is a federal state that has the potential to be an excellent location for companies and investors from all over the world in many different industries. What are the main industries that you have?
Many companies and industrial regions with an international reputation are situated in Niedersachsen, whether we’re talking about fantastic cruise ships, advanced developments in the automotive industry or renewable energy looking to the future.

Read More