SAXONY-ANHALT – A BUSINESS LOCATION FULL OF OPPORTUNITIES
Marostica Business Day
July 6th 2017 SAXONY-ANHALT OUTLINE
1 – IMG: Investment and Marketing Group
2 – Saxony-Anhalt: a business location full of opportunities
3 – A center of research
4 – Leading industries
5 – Italian success stories
6 – Investment incentices
7 – Quality of life
8 - Summary
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01 / IMG – INVESTMENT AND MARKETING CORPORATION SAXONY-ANHALT
01 / SAXONY-ANHALT: IMG
IMG is the investment promotion and marketing agency of the German federal State of Saxony- Anhalt
IMG is 100 % owned by the state government and chaired by the Ministry of Economy, Science and Digitalisation
IMG supports investors throughout the investment Your Partner – IMG Saxony-Anhalt lifecycle – at no charge for the investor
IMG has a track record of more than 200 projects
IMG is responsible for promoting Saxony-Anhalt as a tourism destination
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 6 02 / SAXONY-ANHALT: IMG - SERVICES
IMG Investment and Marketing Corporation Saxony-Anhalt
Location & Tourism Investment Marketing Consultancy Location Marketing We support you in the site search
Creating demand We support you through targeted in financing issues marketing
Key brands We support you in dealing with the authorities
Sustainable We support you success in project with excellent implementation market research
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 7 03 / SAXONY-ANHALT: IMG - WORLD CLASS SERVICE
The editors of Site Selection and a distinguished panel of global foreign direct investment experts and site consultants are pleased to announce the Top Global Investment Promotion Agencies for 2016.
These agencies accumulated the most points in a set of criteria that include:
Most professionally responsive to investor inquiries
Most knowledgeable and linguistically diverse staff
Most access to user-friendly databases of sites and incentives, both general and sector-specific
Best information on timing expectations for permitting and other processes
Best access to recent investors in the region for testimonials
Best reputation for protecting investor confidentiality
Best reputation for after-care services
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 8 04 / SAXONY-ANHALT: IMG - TEAM INTERNATIONAL
Oliver Köhn Mathias Obieglo Head of International Team Asia Tel: +49 (0) 391 / 568 99 30 Tel: +49 (0) 391 / 568 99 25 [email protected] [email protected]
Kristin Gabor Dana Brüggeman North America UK, BeNeLux Tel: +49 (0) 391 / 568 99 22 Tel: +49 (0) 391 / 568 99 23 [email protected] [email protected]
Christiane Kühne Tanja Rüdinger Austria and Switzerland Press and PR Tel: +49 (0) 391 / 568 99 39 Tel: +49 (0) 391 / 568 99 76 [email protected] [email protected]
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 9 02 / GERMAN FEDERAL STATE SAXONY-ANHALT
01 / SAXONY-ANHALT: OVERVIEW
Major cities: Magdeburg (capital), Halle
Size: 20,447 sq GDP (2015): 56.2 billion km EUR
Inhabitants: 2.3 million Universities: 7
Saxony-Anhalt is located in the center of the EU27, a market with >500 million consumers
The region is part of the largest market Germany with 82 million consumers
€ 6.5 bn. of fixed assets form 33 % of foreign investment into East Germany and make Saxony-Anhalt the number 1 location for FDI in the region
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 11 02 / SAXONY-ANHALT: INFRASTRUCTURE
Highways Kiel One of the most efficient road networks in Europe with the following highways: Hamburg Schwerin
Bremen A2 Netherlands - Ruhr Area - Magdeburg - Berlin - Poland Berlin
A9 Berlin - Halle/Leipzig - Munich Hannover Potsdam Magdeburg A14 Magdeburg - Halle/Leipzig - Dresden Düsseldorf
Dresden A38 Gottingen - Halle/Leipzig Erfurt Wiesbaden Intermodal Transport Mainz 5 trimodal terminals Saarbrücken
Water level-independent connections to Antwerp, Rotterdam, Amsterdam, Hamburg, Berlin and Szczecin (PL) Stuttgart München
Airport
Leipzig/Halle: European air cargo hub serving 51 destinations Major German Highways in 13 countries; 24-hour operating permit for air freight traffic
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 12 03 / SAXONY-ANHALT: AIRPORTS
International Airports
1 Airport Berlin 7 Berlin 2 Airport Hanover Im Bau 2 1 3 Airport Leipzig/Halle Hanover 5 Magdeburg 4 Regional Airports 6 Dessau 4 Airport Cochstedt 9 Halle 5 Business Airport Magdeburg 8 3
6 Business Airport Dessau Leipzig
7 Business Airport Stendal-Borstel
8 Business Airport Halle-Oppin
9 Airport Ballenstedt Highway 4-lane national road
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 13 03 / SAXONY-ANHALT: EASY ACCESS
Be quickly in the metropolis of Europe Non-stop flights to London 1 h 45 min flight time Amsterdam 1 h 15 min flight time Paris 1 h 40 min flight time Bern 1 h 40 min flight time Rome 2 h flight time Madrid 2 h 30 min flight time Barcelona 2 h 15 min flight time
and beyond … New York 8 h flight time Cairo 4 h flight time Beijing 9 h flight time Source: Airport Leipzig-Halle 2015 Singapore 12 h flight time
(From Berlin Airports Tegel /Schönefeld (and soon from Airport Berlin Brandenburg - currently under construction))
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 14 04 / SAXONY-ANHALT: WATERWAYS
Saxony-Anhalt’s inland ports are well connected to all Kiel major sea hubs, including Hamburg and Rotterdam Hamburg Schwerin
The Magdeburg and Halle port management BremenWeser
companies offer additional logistical services, i. e. Hannover Berlin Mittelland Canal Potsdam multimodal transport. Additionally, Magdeburg has a Magdeburg customs office Düsseldorf
Dresden Erfurt Distances to Hamburg via Waterways from: Wiesbaden Magdeburg Aken Dessau-Roßlau Haldensleben Mainz 300 km 345 km 360 km 280 km Saarbrücken 48-72 h 72-96 h 72-96 h 48-72 h
Stuttgart München
Inland Waterways in Germany
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 15 05 / SAXONY-ANHALT: BUSINESS ENVIRONMENT
Business Environment Corporate taxes and VAT 2016 (in %) high safety standards 40 a high level of protection for intellectual 35 property 30 political stability and a reliable legal system 25 20 high industry acceptance 15 10 Service 5 0 fast and easy approval procedures (e.g. planning permission generally issued in 4 weeks)
free, professional and client-oriented Corporate taxes and VAT in comparison VAT (in %) consultancy services by IMG (in %)
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 16 06 / SAXONY-ANHALT: LABOUR MARKET
Highly skilled GDP per hour worked, G7 countries 2010 to 2015
90% of all employees possess a vocational or 106 university degree (OECD average: 71%) 105 High availability of skilled employees Canada 104 Germany 55,000 students in Saxony-Anhalt 103 France Italy 102 Japan Flexibility 101 United Kingdom United States High willingness among employees to work 100 flexible hours and relocate or travel 99 2010 2011 2012 2013 2014 2015 High motivation and company loyalty, employee turnover <1% source: data.oecd.org Company-specific working schedules (24/7)
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 17 09 / SAXONY-ANHALT: COST OF LAND
The average price of industrial fully developed Cost of industrial land in ground in Saxony-Anhalt is far below the German average, and lower than most other EUR/m² German regions 250
200 In Saxony-Anhalt the average price per m² for developed sites is about 12 €/m² 150 100 50
0
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 18 03 / SAXONY-ANHALT: A CENTER OF RESEARCH
01 / SAXONY-ANHALT: A CENTER OF RESEARCH
University University Martin Luther Otto von Guericke Magdeburg Halle/Wittenberg Ca. 15,000 students in 9 faculties and 56 500 years of tradition, ca. 17,000 students in study programs (social, economic and 180 study programs technical/chemical) Institute of Physics: productive center of condensed matter Institute for Process Engineering: particle physics, with specific key subjects in technology, production of nanoparticles Stendal Magdeburg hard- and soft-matter science Institute of Fluid Dynamics and Solid-state physics Thermodynamics Institute of Chemistry, Institute of Computer Magdeburg Instrumental and Environmental Sciences Technology Department Bernburg Halberstadt Köthen FH Magdeburg/Stendal Chemical Institute Wernigerode Dessau Ca. 6,000 students in social, economical and Institute of Computer Sciences technical education Fachhochschule Harz Halle FH Anhalt Ca. 4,000 students in 19 study programs economy and technology Ca. 6,500 students in the fields of technology, Merseburg civil engineering
Burg Giebichenstein Halle FH Merseburg More than 1.000 students in art and Ca. 3,400 students in interdisciplinary study design programs
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 20 03 / SAXONY-ANHALT: A CENTER OF RESEARCH
Scientific institutions
Max Planck Institute Experimental Factory
Fraunhofer Institute for Factory Centre for Neuroscientific Innovation Operation and Automation (IFF) and Technology
Leibniz Institute for four innovation and start-up centres Neurobiology (IfN) Port of sciences
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 21 04 / SAXONY-ANHALT: INDUSTRIES
01 / SAXONY-ANHALT: INDUSTRIES
Mechanical Engineering
Chemical Life Science and Plastics Industry
Key Industries Automotive Logistics Industry
Renewable Food Energy Industry
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 23 02 / SAXONY-ANHALT: MECHANICAL ENGINEERING
Industry Overview:
machine tool building, steel and custom machine engineering
power station and conveyor technology, stranding machines
motors/ motor elements
foundries / foundry technology
renewable energies
automation and control technology
plants for oil production and processing
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 24 03 / SAXONY-ANHALT: CHEMICAL AND PLASTICS INDUSTRY
Facts & Figures More than 200 companies, 25,000 employees
Annual turnover in 2015: €3.2 bil.
Well known international investors
Plastic producers: Dow Chemical, Braskem, Trinseo, Domo
Plastic processors: BASF, Manuli Stretch, Polifilm Group
Unique R&D infrastructure Fraunhofer PAZ: sole pilot plant for polymer development in Europe
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 25 04 / SAXONY-ANHALT: CHEMICAL AND PLASTICS INDUSTRY
to Hamburg Chemical Parks
B190n Bernburg Soda, sodium hydrogen carbonate, hydrogen peroxide A39
Bitterfeld inorganic products, chlorine products, specialty to Berlin A2 chemicals, pharmaceuticals Solar Valley as the Center of PV A 395 Magdeburg A9 Schkopau PE, PP, PET, XpS-Insulation, EpS, PU - and epoxy adhesives, PS, synthetic rubber, PVC Bernburg Piesteritz Fraunhofer PAZ pilot plant A14 B6n Bitterfeld Halle Leuna refinery, polymers, gases, catalysts, specialty to Frankfurt A38 chemicals, adhesives, fuels Schkopau A14 Germany’s largest chemical park Leipzig
to Dresden Piesteritz nitrogen products, urea, ammonia, nitric acid, Zeitz melamine to Frankfurt A4
Motorway Zeitz adipic acid, oil refinery, waxes New Federal Road (4 lanes) to Munich
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 26 04 / SAXONY-ANHALT: AUTOMOTIVE INDUSTRY
Due to an ideal location in the centre of several OEM production facilities, Saxony-Anhalt is a prime region for the supplying industry
Volkswagen: Wolfsburg Berlin Wolfsburg, Hanover, Brunswik, Salzgitter, Kassel, Dresden, Brunswick construction
Chemnitz, Zwickau/Mosel Ludwigsfelde
Opel: Hanover Iunder
Eisenach Magdeburg Salzgitter BMW: Dessau Leipzig, Berlin
Neoplan: Halle
Plauen Kassel Porsche: Kölleda Leipzig
Leipzig Chemnitz Dresden Daimler: Eisenach
Ludwigsfelde, Berlin, Kölleda Plauen Highway 4-lane national road
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 27 08 / SAXONY-ANHALT: AUTOMOTIVE INDUSTRY
Strengths – Automotive Supplier Network
Mechanical parts for power train
Aluminum dye cast for engines
Rubber and plastics parts
Tools
R&D for combustion engines and alternative power trains (incl. Batteries for EV and PHEV)
Fuel Cells
Lightweight materials
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 28 09 / SAXONY-ANHALT: FOOD INDUSTRY
Sector 22,500 employees at 173 companies Annual turnover in 2015: € 7.7 billion Export ratio: 15.2% About 1.2 million hectares (2.9 million acres) of agriculturally used land with 85% cultivated land (highest ratio in Germany) Labor productivity (€ 342,000 per employed person): 12% higher than German average
Market Regional focus but constantly growing in Exports Highest contribution to total turnover of processing industries (19,2%) Labour productivity in the branch is 12% higher than the Federal average
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 29 10 / SAXONY-ANHALT: RENEWABLE ENERGY
Approx. 40 % of produced energy power comes from renewable energy resources
Thereof 72 % of the energy are produced by wind energy
45% of the electrical energy produced is exported to other German states and abroad
In total 24,400 people are (directly and indirectly) employed in the field of Renewable Energy
2.6 bn. EUR investments in production facilities (Solar, Wind, Biomass)
SOLAR VALLEY – the world´s most holistic PV cluster provide benefits in terms of costs, risks and partners
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 30 11 / SAXONY-ANHALT: RENEWABLE ENERGY
Germany is Europe´s strongest PV market with more than 39,5 GWp cumulated installations in 2015 6 Installed renewable power in GWp in Saxony-Anhalt
5 New capacity of 1,175 MWp was installed
in Germany in 2015 (Jan-Oct) 4 Gases Biomass 3 World´s leading PV R&D hub: highest Water Power density of PV institutes and companies 2 Windpower conducting research worldwide Solar 1
Saxony-Anhalt has the highest share of 0 renewable energy of all German States– 52% of energy consumption is produced by renewables
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 31 12 / SAXONY-ANHALT: LOGISTICS
Basic data: 3.000 logistics companies 3 bn Euros annual turnover
Good to know: Hermes fulfilment center is the world‘s largest automated warehouse (16.000 parcels per hour throughput) DHL European air cargo hub at Halle- Leipzig airport (24/7 operation) Strong research base: Fraunhofer IFF and University of Magdeburg with Logistics chair
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 32 05 / SAXONY-ANHALT: ITALIAN SUCCESS STORIES
01 / SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 34 02 / SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS
Zuegg - Zörbiger 2002 purchase of „ZÖRBIGER“, a traditional and well established brand for jam and sirup in Germany Investment of 5 million Euros in new equipment and machinery Expansion of the factory in 2015 (additional 2.6 million Euros and 15 new jobs) 75 workers in 3 shifts work 24/7 Over 70% market share in East Germany
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 35 03 / SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS
Manuli Stretch Started as Greenfield investment in 1998 in DOW Value Park in Schkopau 1998: 25 million Euro initial investment 2002: 15 million Euro first extension 2007: 15 million Euro second extension 2010: 21 million Euro third extension Currently 175 workers employed Schkopau facility is the most profitable of Manuli Group
„Alla fine le buone esperienze con i collaboratori del luogo sono state determinanti per la nostra scelta. Una ditta come la nostra non si puo comprare chiavi in mano. La necessità di specializzazione in Manuli e alta. Abbiamo trovato nella regione ditte specializzate che hanno soddisfatto les nostre alte aspettative.“
Massimo Moroni, CEO Manuli Stretch s.p.a.,
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 36 04 / SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS
Nordlam GmbH Start of project 1999 Total investment 50 million Euro 180 employees Work in 3 shifts 24/7
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 37 05 / SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS
Isopan Deutschland GmbH Start of project 2012 Initial investment 15 million Euro 30 employees at the beginning, today already more than 70 employees Expansion in progress
« La Sassonia-Anhalt è tra i Länder tedeschi più attivi ed è caratterizzata da uno sviluppo positivo. Anche se il settore dell’edilizia sta vivendo un lieve calo in tutta la Germania, in Sassonia-Anhalt e negli altri Länder dell’ex Repubblica Democratica si continua a registrare un’intensa attività economica. Grazie alla sua posizione centrale e ai buoni collegamenti infrastrutturali, partendo da Halle possiamo eseguire perfettamente consegne nella Germania centrale e settentrionale, come anche in Europa settentrionale ed orientale.»
J.-M. Reiter, General Manager, Isopan Deutschland GmbH
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 38 06 / SAXONY-ANHALT: INCENTIVES
01 / SAXONY-ANHALT: INCENTIVES
Investment small business up to 35% < 50 Employees; ≤ €10 million Turnover; ≤ €10 million Balance sheet total
medium-sized business up to 25% < 250 Employees; ≤ €50 million Turnover; ≤ €43 million Balance sheet total
large business up to 15%
Staff
up to 50% grants for staff training Guarantees
Guarantees for up to 70% of investment loans R&D Industrial research: up to 80%
Experimental development: up to 60%
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 40
02 / SAXONY-ANHALT: INCENTIVES
Subsidies are available for … First establishment of a company Expansion of a plant (depending on company size)
Subsidy Requirements Creation of new permanent jobs (eligible investment volume of up to € 750,000 per job created) Max. aid amount: € 10 mil. per investment case Period of investment up to 36 months Nationwide sales (radius > 50 km) Start of investment after submission of application for the grant program Minimum 25% of aid free (non-public) funds of total eligible investment cost
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 41 07 / SAXONY-ANHALT: QUALITY OF LIFE
01 / SAXONY-ANHALT: CORE REGION MAGDEBURG
City of Magdeburg – open for the future
General data Soft facts
Magdeburg: 240,000 inhabitants State capital of Saxony-Anhalt, largest city in the Surroundings: 650,000 inhabitants state 4 million inhabitants within 125 km radius Traditional industrial city with a charming historical background located at the river Elbe
Many historical places and buildings, like the Magdeburg Cathederal, are representing the 1,200 years old history of the city Otto-von-Guericke University and the University of Applied Sciences Magdeburg-Stendal are engaged in extensive joint-venture-research programmes Magdeburg long tradition in engineering and machinery industry boosted the automotive supplier branch in the last decade Sights: Magdeburg Cathedral, Monastery of Our Lady, Hundertwasser-Building, Rotehorn-Park, Elbauen-Park /// IMG Sachsen-Anhalt mbH /// 06/07/2017 43 02 / SAXONY-ANHALT: CORE REGION MAGDEBURG
Leisure and tourism 17 parks in and around the city European Cycle Route alongside the River Elbe
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 44 03 / SAXONY-ANHALT: CORE REGION MAGDEBURG
Leisure and tourism Trade fair, opera house, puppet theatre, football stadium, Bördelandhalle sporting arena, museums, conservatory, etc.
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 45 04 / SAXONY-ANHALT: CORE REGION HALLE
Halle and Leipzig – offering dynamic surroundings
General data Soft facts
Halle: 240,000 inhabitants Second largest city in Saxony-Anhalt Leipzig: 500,000 inhabitants First mentioned in the year 806 5 million inhabitants within 125 km radius Cultural heart of Saxony-Anhalt with its opera, numerous theatres, museums and galleries Martin-Luther-University in Halle, University of Leipzig, Universities of Applied Sciences in Merseburg and Leipzig and several research institutes form a R&D cluster in central Germany Ambitious core region with high investments of DHL, BMW, Dell, Porsche Attractive residential areas in the city centre as well as in the surroundings Sights: Giebichenstein Castle, Moritzburg, Cathedral, Market Place, The Handel House, Peissnitz Island
/// IMG Sachsen-Anhalt mbH /// 06/07/2017 46 08 / SAXONY-ANHALT: SUMMARY
01 / SAXONY-ANHALT: SUMMARY
Easy access to all European markets -> gateway to Europe
Highly skilled and flexible workforce
Innovative technologies “Made in Germany”
Reduction of investment costs due to excellent funding incentives
A reliable and supportive environment for businesses
Moderate cost of real estate
High quality of life
Confidential and cost-free service through every step of the
investment
/// IMG Sachsen-Anhalt mbH /// 06.07.2017 48 GRAZIE PER LA L‘ATTENZIONE !
SAXONY-ANHALT: BEST TO INVEST Oliver Köhn Head of Business Development /// Site selection Tel.: +49 (391) 568 9930 Fax: +49 (391) 568 9950 /// Financing issues Mail: [email protected]
/// Dealing with authorities IMG – Investment and Marketing Corporation Saxony-Anhalt /// Personnel management Am Alten Theater 6 39104 Magdeburg /// Screening investment opportunities Germany
www.invest-in-saxony-anhalt.com
/// IMG Sachsen-Anhalt mbH ///