10,000 New Jobs, Investments Increased

FRANKFURT, Germany - German Chemical Parks Record Growth - Attractive Business Model for Investors

The number of employees in German chemical parks has increased by roughly 10,000 to 240,000 between 2006 and 2008. In this same period, the number of companies doing business at these sites increased from 840 to 920. These figures were presented today by Dr. Klaus-Dieter Juszak, Chairman of the German Sector Group of Chemical Parks and Sites in the German Chemical Industry Association (VCI). These figures, based on a new industry estimate, were presented during a press conference at the ACHEMA 2009 in Frankfurt. “The German concept of chemical parks is successful and has a promising future,” noted Juszak. Michael Pfeiffer, Chief Executive of Germany Trade & Invest (GTAI), confirmed the interest of foreign companies in the successful business model provided by chemical parks.

Establishment of Value-Added Chains

Investments in chemical parks have increased. In 2008 the total investment volume surpassed EUR 3.5 billion for the first time. In the years leading up to 2008, companies invested an average of roughly EUR 3 billion in the expansion and construction of facilities. More than 80 percent of investment expenditures in the industry fell upon chemical producers. These investments include both new and established companies. Chemical parks create an optimal environment, for new and established companies alike.

Efficiency through Network Structures

For investors looking to Germany as a chemical production site, Germany offers numerous location advantages over its international competitors: a reliable energy supply, combined production potential, and the sharing of costs for raw materials and intermediate goods.

Research Network

The unique network of university and independent research institutes is a further advantage for Germany as a chemical industry site: Every second chemical park, according to Juszak, is directly connected to a research network, as the industry is dependent on a constant flow of research results. The chemical industry also hopes to continue its high research and development investments in order to emerge stronger from the global economic crisis. In this context, Juszak welcomes the federal minister’s introduction of tax relief for companies’ research and development initiatives. “It is important that both the small businesses and large companies benefit from this support,” stressed the Chairman, “because innovation, especially in the chemical industry, is based heavily on cooperation.”

GTAI Chief Executive Michael Pfeiffer confirms that Germany is also seen as an attractive investment location for foreign investors. Germany Trade & Invest is the new foreign trade and inward investment promotion agency of the Federal Republic of Germany. One of the organization’s missions is to attract foreign investors to Germany. According to Pfeiffer, Germany scores very highly in terms of the country’s competitiveness as an investment location. This is true not only for the chemical industry and its related industries, but also extends to other branches. In a recently published study by the American Chamber of Commerce (AmCham), US companies ranked Germany as the most attractive business location in Europe. Reasons cited included the high product and process quality in Germany. These are factors that both companies and customers greatly value, especially in an economic downturn. Pfeiffer further discussed current industry figures. According to these figures, Germany’s chemical industry is number one in Europe in terms of revenues, exports, investment, and R&D expenditures. “The German chemical and chemical processing industry is one of the global heavyweights. Germany is a clear leader in terms of exports. Chemical companies that produce in Germany can come out ahead of the competition in international markets,” said Pfeiffer.

In addition to investments by the chemical industry and the related processing industries, companies in renewable energies are increasingly seeking proximity to chemical parks, especially in photovoltaics, biopolymers, and biofuels. This demand is notably visible in R&D-intensive investment projects.

Kontakt: VCI-Pressestelle, Telefon: +49(0)69-2556-1496, E-Mail: zedlitz@vci.de

Kontakt: GTAI-Pressestelle, Telefon: +49(0)30-200-099-173, E-Mail: eva.henkel@gtai.com

Source: Germany Trade and Invest GmbH

Kontakt: VCI-Pressestelle, Telefon: +49(0)69-2556-1496, E-Mail: zedlitz at vci.de; Kontakt: GTAI-Pressestelle, Telefon: +49(0)30-200-099-173, E-Mail: eva.henkel at gtai.com