The Chemical Industry in Germany - AHKindien.ahk.de/fileadmin/ahk_indien/Bilder/2013_Past_Events/IG_SME/... · The Chemical Industry in Germany Indo-German SME Forum ... *Data from

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


Germany

I. Germany – the Investment Location

II. The Chemical Industry in Germany

III. Chemical Parks

IV. Successful Examples

V. Contact

page 4

May 2013


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


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


page 6

May 2013


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


page 7

May 2013


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)


page 8

May 2013


Germany



III. Chemical Parks


V. Contact

page 9

May 2013


Germany


Germany is a very important sales market for chemicals in Europe

Consumption of Chemicals in Europe


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


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


Germany


The German chemical industry is the world champion in exports


Chemical exports by country (2009, in € billion)

page 12

May 2013


Germany


Europe is the most important market for the German Chemical Industry

German chemical exports



German chemical exports:

€ 134 billion (2009)

page 13

May 2013


Germany


Germany is the biggest producer of chemicals in Europe

1 Share of total sales


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


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


Germany

Germany has the best workforce in Europe


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


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


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


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


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


Rapid and dynamic recovery of the chemical business Chemical production in Germany

page 20

May 2013


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


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


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


page 23

May 2013


Germany

Germany s outstanding infrastructure gives it logistical advantages


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


Germany

Germany s outstanding infrastructure gives it logistical advantages


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


Germany



III. Chemical Parks


V. Contact

page 26

May 2013


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


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


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


Germany

Chemical Parks

The chemical park concept offers investors individual solutions for

their specific business model


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


Germany

Chemical Parks

Investors choose the services that suit their business model from

the wide range offered by the site operators


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


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


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


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


page 33

May 2013


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


Germany



III. Chemical Parks


V. Contact

page 35

May 2013


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


Germany

Example S.I.Q. - Kunstharze


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


2000/2001

Location decision

Detailed engineering

3

5

6

4

2

page 37

May 2013


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


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


6

5

4

New built factory

2007

page 39

May 2013


Germany

Example Honshu Chemicals


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


4 April 2001

Location decision

Financial incentives advising

page 40

May 2013


Germany



III. Chemical Parks


V. Contact

page 41

May 2013


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

[email protected]

State: 5/2013

page 42

May 2013


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


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


Germany

RC WWW

Internet:

national

www.responsible-care.de

international

http://www.cefic.org/Responsible-Care/

www.responsiblecare.org

www.icca-chem.org

http://www.responsible-care.de/



http://www.icca-chem.eu/en/Home/ICCA-initiatives/Responsible-care/





http://www.responsiblecare.org/

http://www.icca-chem.org/



Documents

The Chemical Industry in Germany - AHKindien.ahk.de/fileadmin/ahk_indien/Bilder/2013_Past_Events/IG_SME/... · The Chemical Industry in Germany Indo-German SME Forum ... *Data from