the chemical industry in germany -...
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VERBAND DER CHEMISCHEN INDUSTRIE e.V.
The Chemical Industry in Germany
Indo-German SME Forum 31st May – 01st June, 2013
Norbert Theihs
page 2
May 2013
The Chemical Industry in
Germany
Chemical Parks in Germany
There are many good reasons to invest in a chemical park in
Germany:
Chemical parks provide the platform for the success of Germany s
chemical industry
The chemical park concept is innovative and unmatched anywhere else
in the world
Investors find optimum economic conditions in chemical parks
Chemical park operators offer investors a comprehensive range of
services
The chemical park concept offers investors individual solutions for their
business models
page 3
May 2013
The Chemical Industry in
Germany
I. Germany – the Investment Location
II. The Chemical Industry in Germany
III. Chemical Parks
IV. Successful Examples
V. Contact
page 4
May 2013
The Chemical Industry in
Germany
Germany – the Investment Location
Germany is the geographical and economic center of Europe
GDP1
(2010, in
€ billion)
Share in global
GDP (2010, %)
Population
(2010, in
million)
World*
46,603
100
6,915
EU 27
12,284
26
501
Germany
2.499
5
82
USA
11,057
24
309
Japan
4,122
9
127
1 Gross Domestic Product,
*Data from World Bank 2011; Japanese Office of Statistics, 2011; Eurostat, 2011; US Census Bureau, 2011
page 5
May 2013
The Chemical Industry in
Germany
Germany is the most attractive domestic market in Europe
Germany has Europe s
largest gross domestic
product (GDP)
Germany is the largest sales
market in Europe
Germany has the highest
population in Europe
Consumption Expenditure
(2009, in € billion)
Source: Institute for Management Development IMD, 2011; Germany Trade & Invest, 2011
Germany – the Investment Location
page 6
May 2013
The Chemical Industry in
Germany
Germany is the top location for investments in Europe
Attractiveness of the location (%)1
1 Respondents could give multiple answers, Ranking from US – point of view: 100% = hightest points
Source: AmCham Business Barometer 2011; Deutsche Bundesbank, 2011
More than 410 foreign chemical
companies with sales of more than €
72 billion and about 147,000
employees are present in Germany.
Germany is Europe s leading
investment location
65% of companies considering
investment projects in Europe plan to
invest in Germany
The presence of foreign companies in
Germany increases constantly
Germany – the Investment Location
page 7
May 2013
The Chemical Industry in
Germany
Foreign direct investment (FDI) in Germany s chemical industry is
stable at high level for many years
9,1
9,9 11,1
15,7
20,623
23,9
23,9
25,726,6
32,8
37,5
39,4
0
5
10
15
20
25
30
35
40
45
Quelle: VCI, Publication: Chemical Industry in Figures, 2010
Foreign direct investment in the German
chemical industry has more than
quadrupled to € 39 billion over the last
15 years.
Foreign companies have
continuously expanded their
capacities in Germany
Foreign companies invested €
2 billion in Germany in 2008
FDI-chemical industry in Germany
(cumulated in € billion)
Germany – the Investment Location
page 8
May 2013
The Chemical Industry in
Germany
I. Germany – the Investment Location
II. The Chemical Industry in Germany
III. Chemical Parks
IV. Successful Examples
V. Contact
page 9
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Germany is a very important sales market for chemicals in Europe
Consumption of Chemicals in Europe
(2009, in € billion)
Source: VCI, Publication: Chemical Industry in Figures, 2010
Germany105
France107
Rest of Europe91
Italy83
Great Britain56
Spain56
Poland20
Rest of EU156
European Consumption of
chemicals: € 674 billion (2009)
page 10
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
1995
2000
2008
2009
Share of EU 27
(2009, %)
EU 27-Ranking
(2009)
Sales (in € billion)
112,3
135,0
183,0
158,1
24,1
1
Investment
(in € billion)
5,8
7,3
6,51
----
22,51
1
Exports (in € billion)
51,8
76,6
138,0
134,2
24,9
1
R&D expenditures
(in € billion)
5,3
7,1
7,12
6,51
24,31
1
1 Figures for 2007 2 Figures for 2006
Source: VCI, Publication: „Chemical Industry in Figures“, 2010
The German chemical industry has maintained a leading role in Europe for
many years
page 11
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
The German chemical industry is the world champion in exports
Source: VCI, Publication: „Chemical Industry in Figures“, 2010
Chemical exports by country (2009, in € billion)
page 12
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Europe is the most important market for the German Chemical Industry
German chemical exports
(2009, in € billion)
Source: VCI, Publication: „Chemical Industry in Figures“, 2010
German chemical exports:
€ 134 billion (2009)
page 13
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Germany is the biggest producer of chemicals in Europe
1 Share of total sales
Source: VCI, Publication: „Chemical Industry in Figures“, 2010
A quarter of all chemicals produced in Europe came from Germany
(2009, in %)1
Germany 24,1
France17,3
Italy10,6
Great Britain 9,7
Spain7,3
Netherlands6,6
Belgium6,3
Ireland5,4
Others12,7
Value of production in the
EU: € 656 billion (2009)
page 14
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Innovative products make up more than 50% of chemical production in
Germany
Distribution of production according to chemical product groups
(2009, %)
Quelle: VCI, Publication: „Chemical Industry in Figures“, 2010
Fine and specialty chemicals:
25
Pharmaceuticals:24
Polymers:18
Petrochemicals and derivates:
16
Inorganic basic chemicals: 9
Detergents and body care products: 8
page 15
May 2013
The Chemical Industry in
Germany
Germany has the best workforce in Europe
The Chemical Industry in Germany
1 Respective share of the total number of scientists (superior education, university degree) in the EU 27 2 Respective share of the qualified workforce (secondary education, post-secundary level, technicians and comparable non-technical professions)
in the EU 27
Source: Eurostat, 2011
Germany has the highest level of
employee qualification in Europe
Advanced training and employee
qualification are important success
factors for the companies operating in
Germany
Stable social partnership
Employees identify with their companies
to a high extent
Agreement-oriented partnership between
companies and trade unions
High level of productivity with
committed employees
Employee qualification (2010, % of total number in the EU 27)
0
5
10
15
20
25
scientist1 Qualified workforce2
page 16
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Lowest number of strikes in Europe
Source: Eurostat, 2009
Days lost to strikes (annual average 2004-2008, per 1,000 employees)
page 17
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
In comparison with other European countries, Germany has stable labor
costs
Source: BAVC, 2011
Changes in labor costs in the chemical industry
(2006-2009, %)
page 18
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Falling unit labor costs increase the competitiveness of companies in
Germany
Germany
Netherlands
Spain
EU 27
France
Great Britain
Czech Republic
Slovakia
Changes in unit labor costs
(Total economy 2005-2010, %)
Source: Eurostat 2011, inflation adjusted
page 19
May 2013
The Chemical Industry in
Germany
Seasonly adjusted; index 2005 = 100, annual percentage change
Quellen: Destatis, VCI
-20
-15
-10
-5
0
5
10
15
20
80
85
90
95
100
105
110
115
120
2002 2003 2004 2005 2006 2007 2008 2009 2010
The Chemical Industry in Germany
Rapid and dynamic recovery of the chemical business Chemical production in Germany
page 20
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Nearby university training strengthens research and development
for the chemical industry and its applications
58 universities to train young scientists
for the chemical industry
Including 18 universities offering
biochemistry and 15 universities offering
food chemistry
24 universities of applied sciences
offering chemistry
The intensive exchange between
universities and companies ensures that
German companies are able to hire top
talents in science and engineering.
Source: German Chemical Society GDCh, 2007; Federal Ministry of Education and Research BMBF, 2008
page 21
May 2013
The Chemical Industry in
Germany
The Chemical Industry in Germany
Nearby non-university research and development supports the
chemical industry and its applications
Source: Federal Ministry of Education and Research BMBF, 2008; Germany Trade & Invest, 2009
76 non-university R&D facilities for the
chemical industry:
17 Institutes of Max Planck Society (MPG)
23 Institutes of Fraunhofer-Gesellschaft
(FhG)
6 Institutes of Helmholtz Association (HGF)
5 Institutes of Leibniz Association (WGL)
15 Federal, national and independent R&D
institutes.
Germany has a range of universities,
R&D facilities and companies that is
among the leaders in the world.
page 22
May 2013
The Chemical Industry in
Germany
Germany is the top location for quality in research and development
The number of patents underlines
the success in research and
development
Within Europe Germany is at the
top of the list for patent
registrations -proof that Germany
is the top location for innovations
European granted patent registrations,
chemistry1 (2009, absolute figures)
155
168
343
381
419
572
669
1,781
2,143
2,753
0 1,000 2,000 3,000
Belgium
Sweden
Italy
Netherlands
Great Britain
Switzerland
France
Japan
Germany
USA
1 Chemistry and Polymers; Source: EPO, 2010
The Chemical Industry in Germany
page 23
May 2013
The Chemical Industry in
Germany
Germany s outstanding infrastructure gives it logistical advantages
The Chemical Industry in Germany
1 Respondents could give multiple answers;
* Figures correspond to the accounting cycle/size of ports and relevance of the ogistical areas; ** > 500.000 passengers
Source: World Bank, 2010; Working Committee of German Passengerairport, Germany Trade and Invest, 2009
Germany has the best transportation
and logistics infrastrucutre in Europe
The road density is twice as high as
the EU average
Transportation routes such as
highways (12,000 km), rail (40,300
km) and waterways (7,500 km) with a
total length of more than 60,000 km
Links to the world s markets via 64
seaports*, 15 inland and 19
passenger airports**
National pipeline network
Country Ranking 2007 Ranking 2010
Germany 3 1
Singapore 1 2
Sweden 4 3
Netherlands 2 4
Luxembourg 23 5
Switzerland 7 6
Japan 6 7
Great Britain 9 8
Belgium 12 9
Norway 16 10
page 24
May 2013
The Chemical Industry in
Germany
Germany s outstanding infrastructure gives it logistical advantages
The Chemical Industry in Germany
Source: Germany Trade & Invest, 2009
All trans-European transportation routes
across Germany
Excellent connections to the countries of
Europe :
Via the North and Baltic Sea routes to the UK,
Scandinavia and the Baltic states
Road and rail network to Denmark
Many different links to the Benelux countries,
France and Eastern Europe by road, rail and
water
Road and rail links across the Alps to the
Mediterranean and the Balkan region
Germany is linked with the markets in neighboring
countries via a dense and well-developed network
of transport routes.
page 25
May 2013
The Chemical Industry in
Germany
I. Germany – the Investment Location
II. The Chemical Industry in Germany
III. Chemical Parks
IV. Successful Examples
V. Contact
page 26
May 2013
The Chemical Industry in
Germany
Chemical Parks
Germany s chemical locations are connected to the European
pipeline grid
Source: Association of the German Petroleum Industry MWV, 2006; VCI and chemical companies, 2008; Germany Trade & Invest, 2009
The diversified oil supply structure
ensures a stable supply basis for the
German chemical industry
Germany gets its oil from the
Mediterranean, the North Sea and from
Russia via pipelines
Pipelines for ethylene and propylene
complement the supply structure for
chemical parks
Chemical parks are connected to a
network of pipelines for natural gas,
naphtha, hydrogen, carbon monoxide
and technical gases
page 27
May 2013
The Chemical Industry in
Germany
German chemical parks offer investors unique benefits
Chemical Parks
Source: VCI and chemical companies, Germany Trade & Invest, 2009
Chemical sites are open for
companies to industry investments
60 chemical parks with an excellent
infrastructure and more than 2,000 ha
of vacant sites for companies to invest
Numerous integration possibilities and,
consequently, cost-reducing synergies
New industry segment:
“Site operators” offer infrastructure,
services and expertise from one
source
page 28
May 2013
The Chemical Industry in
Germany
Chemical Parks
The range of services offered by "site operators"
Optimum economic conditions on site
Fully developed vacant sites with infrastructure suited to the
chemical industry
Extensive range of services
Competent support to help new companies to establish
themselves
Professional management of chemical parks
Source: VCI professional association chemical parks, 2009
page 29
May 2013
The Chemical Industry in
Germany
Chemical Parks
The chemical park concept offers investors individual solutions for
their specific business model
Source: VCI professional association chemical parks, 2009
Planing Real estate Infrastructure Sicherheit Environmental
protection
Analytics Energies Technical
services Logistics PR
Capital, financial management
Controlling, HR, resources
Core
processes
Support
processes
Management
processes
Customers
Investors develop their business model and outsource all other business processes
Research/
development Raw materials Production Marketing Sales
In chemical parks investors can focus on their core business
page 30
May 2013
The Chemical Industry in
Germany
Chemical Parks
Investors choose the services that suit their business model from
the wide range offered by the site operators
Source: VCI professional association chemical parks, 2009
Production
Vacant sites
Site security
Emergency
management/
fire service
Supply and
disposal networks
Roads and railway
tracks
Environment/
safety/health
Warehousing
Energies/utilities
HR services
Logistics
Hazardous goods
handling
Disposal
Analytics
Authority
management
Maintenance/
workshops
Purchasing
Site restaurants
Engineering
Basic and advanced
training
page 31
May 2013
The Chemical Industry in
Germany
Chemical Parks
The chemical park concept is aimed at investors throughout the
entire supply chain
Rohstoffproduzenten
Basic products (organic/inorganic)
Fine/specialty chemicals
Polymers
Chemienahe Prozessindustrie
Paper industry
Automotive components supply industry
Oil refining
Aluminium industry
Metal machining
Glass industry
Weiterverarbeiter / Veredler
Plastics
Pharmaceutical intermediates
Mixed products (e.g. paints, surfactants)
Produzenten von Endprodukten
Plastics
Pharmaceuticals
Paints/coatings
Fibers
Detergents/cleaning agents/cosmetics
Produzenten auf Basis nachwachsender
Rohstoffe / Biotechnologie
Biofuels
Bio intermediates
Biopolymers
Source: VCI professional association chemical parks, 2009
Raw material producers
Processors/refiners
Producers of end products
Chemicals-related processing industry
Producers of goods based on renewable
raw materials/biotechnology
page 32
May 2013
The Chemical Industry in
Germany
Chemical Parks
Investing in German chemical parks brings benefits for the
companies
Flexibilization and optimization of the business model
Possibility of focusing on core business
Time and cost benefits through offered individual services
Investment benefits through existing infrastructure
Synergy potentials resulting from optimum structures (e.g. links to
supply chain,
connections to research institutes)
Benefits from integrated know-how structures
Source: VCI professional association chemical parks, 2009
page 33
May 2013
The Chemical Industry in
Germany
Chemical Parks
The success model “Chemical Parks in Germany”
The concept of chemical parks in Germany has proven its value!
We invite investors from all over the world to take part!
page 34
May 2013
The Chemical Industry in
Germany
I. Germany – the Investment Location
II. The Chemical Industry in Germany
III. Chemical Parks
IV. Successful Examples
V. Contact
page 35
May 2013
The Chemical Industry in
Germany
Example W. and H. Fernholz GmbH
“ValuePark ® has the ideal framework conditions for highly innovative film production. By using local Dow raw
materials, we are able to better respond to market requirements and growing customer demands, improve our
security of supply, and enjoy cost advantages thanks to the removal of transportation routes.” Uwe and Frank
Fernholz, Partner and Managing director, W.u.J Fernholz GmbH & Co. KG Plastics Processing
Investment: € 6 million
Product: FFS-Foils
Employees: 11
Start of project: April 2009
Start of production: November 2009
Annual capacatiy: 10.000 t
Project data Decision drivers
Timeline Location ValuePark® Schkopau - Fernholz
Ideal conditions regarding location
Skilled personnel
Commodities at site
Customer focus
Investment incentives
Start of production
First contact October 2008 1
2
3
5
6
December 2008
April 2009
April 2009
December 2009
Location decision
Start of construction
1963
Financial incentives advising
Company foundation 4
page 36
May 2013
The Chemical Industry in
Germany
Example S.I.Q. - Kunstharze
Investment: € 5 million
Investment project: multi-purpose plant for
producing polycondensates and polyadducts
Jobs in 2007: 32
Annual capacity: 10,000 metric tons
Project Data
Located within Europe
Safety aspects
Complete hassle-free deal: all the necessary
infrastructure services are available for operating
a chemical plant
“We may not have opted for the least expensive site, but for the most developed one, and we’re located in
the heart of Europe. Given all the experience we’ve gained so far, we’d make the same decision today if we
had to do it all over again.” S.I.Q. Manager Karlheinz Schönnagel
Decision Drivers
Timeline Location Marl
now
First Contact July 2000 1
September
2000
November
2000
February
2001
October 2001 Start of production
Feasibility study
Start of construction
2000/2001
Location decision
Detailed engineering
3
5
6
4
2
page 37
May 2013
The Chemical Industry in
Germany
Example Toho Tenax Europe GmbH
Product / Technology: PAN Carbon Fibers
Investment: ca. € 51 million
New jobs: 59
Capacity: 1,700 tons
Start of project: 2008
Start of operation: 2010
Project data
Worldwide aerospace and industry demand to grow by 15
percent per year over the next 10 years
Expected boom after 2010, when motor industry moves
from aluminum to carbon composites for car bodies and
parts
Highly skilled local workforce
Outstanding research bodies
Excellent on-site infrastructure
“Right bang in the center of one of Europe’s most industrialized areas, Oberbruch Industry Park is a natural home for Toho Tenax.
Power is available on tap from the on-site NUON plant and the infrastructure is first-class, we need not worry about red tape or
logistics. With our fourth production line which will roll into action in August 2009 we consolidate our position as the leading carbon
fiber producer in Europe. But we are not at the end of our plans for further expansion here. Carbon fiber worldwide is in short supply,
so companies in this industry will need to keep up with demand.” Eckard Scholten, Managing Director Toho Tenax Europe
Decision Drivers
Timeline Location Oberbruch
Start of the project October 2007 1
2
3
April 2008
October 2010 4
2008
Start of operation
Groundbreaking
Building up plant
page 38
May 2013
The Chemical Industry in
Germany
Example CERAMIC FUEL CELLS
Ceramic Fuel Cells GmbH ASX (Australia); AIM(UK)
Product/Technology: Fuel cell technology
Area: 4,000 m2 (stage 1); 40,000 m2 (stage 2)
New jobs: 200; project team: 3
Start of construction: 2008 (stage 1); start of production:
2009
Annual capacity: 50,000 Stacks/year (stage 1), 400,000
(stage 2)
Project data
Germany -a leading market for residential fuel cell units,
world-leading German industries, close to large market
Highly skilled local workforce
Outstanding research bodies
Excellent on-site infrastructure
Financial investment incentives
“Germany is the leading market for residential fuel cell development in Europe and, with a highly skilled labor force, the region of
North Rhine-Westphalia provides one of the most advanced industry clusters for fuel cell technology in Europe. The company will
scale up production significantly at this plant, which will allow us to increase revenue, reduce unit costs and feed the growing market
demand for fuel cell energy products. We welcome the leadership of the North Rhine-Westphalian government in fostering the fuel
cell industry, and acknowledge their strong support for the company’s project. We are also delighted to be working with Nuon as a
partner at the Oberbruch site.”, Brendan Dow, Managing Director of Ceramic Fuel Cells Ltd
Decision Drivers
Timeline Location Oberbruch
First contact 2005 1
2
3
2006
2009
2008
Start of production
stage two
Start of the project
Signing contract
Start of construction
6
5
4
New built factory
2007
page 39
May 2013
The Chemical Industry in
Germany
Example Honshu Chemicals
Investment: € 38 million
Product: Specialty Bisphenols
Total number of new jobs: 37
Start of construction: April 2003
Start of production: November 2004
Annual capacity of the new facility: 5,000 tons
Project data
Skilled local workforce
Excellent Infrastructure
High quality of chemicals site
Proximity to product development partners
Financial investment incentives
"The 10,000th ton of BP-TMC is a great success for Hi-Bis and furthermore it is also a necessary step to guarantee
Bayer MaterialScience the stability in deliveries, in order to assure the production of APEC® and the provision to the
final customer." Managing director Mr Keiji Suzuki, April 2007
Decision drivers
Timeline Location Bitterfeld/Greppin
First contact 1998 1
2
3
5
6
7
1999 - 2001
June – August 2001
November 2001
April 2003
November 2004 Start of production
Feasibility study, site visits
Formation of a company
Start of construction
4 April 2001
Location decision
Financial incentives advising
page 40
May 2013
The Chemical Industry in
Germany
I. Germany – the Investment Location
II. The Chemical Industry in Germany
III. Chemical Parks
IV. Successful Examples
V. Contact
page 41
May 2013
The Chemical Industry in
Germany
Contact
Information about the chemical industry/ chemical Parks:
The German Chemical Industry Association (VCI)
Mainzer Landstraße 55
60329 Frankfurt am Main
Germany
Thilo Höchst
Managing Director
T. + 49 69 2556-1507
F. + 49 69 2556-1607
State: 5/2013
page 42
May 2013
The Chemical Industry in
Germany
The VCI represents the interests of over 1,600 members
regionally, nationally, in Europe and worldwide
over 1.600 Member Companies
~400 Direct Members 21 Sector Associations
~1.200 Members in
Berlin Office
Brussels Office
page 43
May 2013
The Chemical Industry in
Germany
What is a global link for SME‘s? Responsible Care!
Responsible Care is well known in India and Germany
RC is an appropriate management system framework
RC has it‘s international KPI‘s and understanding
RC contributes to sustainability through the RC Global Charter
RC is a tool for management and working people
RC is the first step to better risk management
RC is the way to talk with administration
RC is a plattform for a better understanding in business
Implement R
Improve EHS
Share best practices through RC
page 44
May 2013
The Chemical Industry in
Germany
RC WWW
Internet:
national
www.responsible-care.de
international
http://www.cefic.org/Responsible-Care/
www.responsiblecare.org
www.icca-chem.org