SAXONY-ANHALT A BUSINESS LOCATION FULL OF OPPORTUNITIES
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1 SAXONY-ANHALT A BUSINESS LOCATION FULL OF OPPORTUNITIES Marostica Business Day July 6th 2017
2 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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5 01 IMG INVESTMENT AND MARKETING CORPORATION SAXONY-ANHALT
6 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 lifecycle at no charge for the investor Your Partner IMG Saxony-Anhalt 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
7 02 SAXONY-ANHALT: IMG - SERVICES IMG Investment and Marketing Corporation Saxony-Anhalt Location Marketing Location & Tourism Marketing Investment Consultancy We support you in the site search Creating demand through targeted marketing Key brands Sustainable success with excellent market research We support you in financing issues We support you in dealing with the authorities We support you in project implementation IMG Sachsen-Anhalt mbh
8 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 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
9 04 SAXONY-ANHALT: IMG - TEAM INTERNATIONAL Oliver Köhn Head of International Team Tel: +49 (0) oliver.koehn@img-sachsen-anhalt.de Mathias Obieglo Asia Tel: +49 (0) mathias.obieglo@img-sachsen-anhalt.de Kristin Gabor North America Tel: +49 (0) kristin.gabor@img-sachsen-anhalt.de Dana Brüggeman UK, BeNeLux Tel: +49 (0) dana.brueggemann@img-sachsen-anhalt.de Christiane Kühne Tanja Rüdinger Austria and Switzerland Press and PR Tel: +49 (0) Tel: +49 (0) christiane.kuehne@img-sachsen-anhalt.de tanja.ruedinger@img-sachsen-anhalt.de IMG Sachsen-Anhalt mbh
10 02 GERMAN FEDERAL STATE SAXONY-ANHALT
11 01 SAXONY-ANHALT: OVERVIEW Major cities: Magdeburg (capital), Halle Size: 20,447 sq km GDP (2015): 56.2 billion 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
12 02 SAXONY-ANHALT: INFRASTRUCTURE Highways Kiel One of the most efficient road networks in Europe with the following highways: Hamburg Schwerin A2 Netherlands - Ruhr Area - Magdeburg - Berlin - Poland Bremen Berlin A9 Berlin - HalleLeipzig - Munich A14 Magdeburg - HalleLeipzig - Dresden Hannover Düsseldorf Magdeburg Potsdam A38 Gottingen - HalleLeipzig Intermodal Transport Wiesbaden Mainz Erfurt Dresden 5 trimodal terminals Saarbrücken Water level-independent connections to Antwerp, Rotterdam, Amsterdam, Hamburg, Berlin and Szczecin (PL) Airport LeipzigHalle: European air cargo hub serving 51 destinations in 13 countries; 24-hour operating permit for air freight traffic Stuttgart Major German Highways München IMG Sachsen-Anhalt mbh
13 03 SAXONY-ANHALT: AIRPORTS International Airports Airport Berlin Airport Hanover Airport LeipzigHalle Regional Airports Airport Cochstedt Business Airport Magdeburg Business Airport Dessau Business Airport Stendal-Borstel Business Airport Halle-Oppin Airport Ballenstedt 5 Magdeburg 3 Berlin 2 1 Hanover 9 4 Im Bau 7 Halle 8 6 Dessau Leipzig Highway 4-lane national road IMG Sachsen-Anhalt mbh
14 03 SAXONY-ANHALT: EASY ACCESS Be quickly in the metropolis of Europe Non-stop flights to London Amsterdam Paris Bern Rome Madrid Barcelona 1 h 45 min flight time 1 h 15 min flight time 1 h 40 min flight time 1 h 40 min flight time 2 h flight time 2 h 30 min flight time 2 h 15 min flight time and beyond New York Cairo Beijing Singapore 8 h flight time 4 h flight time 9 h flight time 12 h flight time Source: Airport Leipzig-Halle 2015 (From Berlin Airports Tegel Schönefeld (and soon from Airport Berlin Brandenburg - currently under construction)) IMG Sachsen-Anhalt mbh
15 04 SAXONY-ANHALT: WATERWAYS Saxony-Anhalt s inland ports are well connected to all Kiel major sea hubs, including Hamburg and Rotterdam The Magdeburg and Halle port management companies offer additional logistical services, i. e. Hamburg Bremen Hannover Weser Schwerin Berlin multimodal transport. Additionally, Magdeburg has a Mittelland Canal Magdeburg Potsdam customs office Düsseldorf Dresden Distances to Hamburg via Waterways from: Wiesbaden Erfurt Magdeburg Aken Dessau-Roßlau Haldensleben Mainz 300 km 345 km 360 km 280 km Saarbrücken h h h h Stuttgart München Inland Waterways in Germany IMG Sachsen-Anhalt mbh
16 05 SAXONY-ANHALT: BUSINESS ENVIRONMENT Business Environment high safety standards a high level of protection for intellectual property political stability and a reliable legal system high industry acceptance Service fast and easy approval procedures (e.g. planning permission generally issued in 4 weeks) Corporate taxes and VAT 2016 (in %) free, professional and client-oriented consultancy services by IMG Corporate taxes and VAT in comparison (in %) VAT (in %) IMG Sachsen-Anhalt mbh
17 06 SAXONY-ANHALT: LABOUR MARKET Highly skilled GDP per hour worked, G7 countries 2010 to % of all employees possess a vocational or university degree (OECD average: 71%) High availability of skilled employees 55,000 students in Saxony-Anhalt Flexibility High willingness among employees to work flexible hours and relocate or travel High motivation and company loyalty, employee turnover <1% Company-specific working schedules (247) Canada Germany France Italy Japan United Kingdom United States source: data.oecd.org IMG Sachsen-Anhalt mbh
18 09 SAXONY-ANHALT: COST OF LAND The average price of industrial fully developed ground in Saxony-Anhalt is far below the German average, and lower than most other German regions In Saxony-Anhalt the average price per m² for developed sites is about 12 m² Cost of industrial land in EURm² IMG Sachsen-Anhalt mbh
19 03 SAXONY-ANHALT: A CENTER OF RESEARCH
20 01 SAXONY-ANHALT: A CENTER OF RESEARCH University Otto von Guericke Magdeburg Ca. 15,000 students in 9 faculties and 56 study programs (social, economic and technicalchemical) Institute for Process Engineering: particle technology, production of nanoparticles Institute of Fluid Dynamics and Thermodynamics Instrumental and Environmental Technology Department Chemical Institute Institute of Computer Sciences Fachhochschule Harz Ca. 4,000 students in 19 study programs economy and technology Burg Giebichenstein Halle More than students in art and design Halberstadt Wernigerode Stendal Magdeburg Magdeburg Halle Merseburg Bernburg Köthen Dessau University Martin Luther HalleWittenberg 500 years of tradition, ca. 17,000 students in 180 study programs FH MagdeburgStendal Ca. 6,000 students in social, economical and technical education FH Anhalt Ca. 6,500 students in the fields of technology, civil engineering FH Merseburg Institute of Physics: productive center of condensed matter physics, with specific key subjects in hard- and soft-matter science Solid-state physics Institute of Chemistry, Institute of Computer Sciences Ca. 3,400 students in interdisciplinary study programs IMG Sachsen-Anhalt mbh
21 03 SAXONY-ANHALT: A CENTER OF RESEARCH Scientific institutions Max Planck Institute Fraunhofer Institute for Factory Operation and Automation (IFF) Leibniz Institute for Neurobiology (IfN) Experimental Factory Centre for Neuroscientific Innovation and Technology four innovation and start-up centres Port of sciences IMG Sachsen-Anhalt mbh
22 04 SAXONY-ANHALT: INDUSTRIES
23 01 SAXONY-ANHALT: INDUSTRIES Mechanical Engineering Life Science Chemical and Plastics Industry Logistics Key Industries Automotive Industry Renewable Energy Food Industry IMG Sachsen-Anhalt mbh
24 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
25 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
26 04 SAXONY-ANHALT: CHEMICAL AND PLASTICS INDUSTRY Chemical Parks to Hamburg B190n Bernburg Soda, sodium hydrogen carbonate, hydrogen peroxide A39 Bitterfeld Schkopau inorganic products, chlorine products, specialty chemicals, pharmaceuticals Solar Valley as the Center of PV PE, PP, PET, XpS-Insulation, EpS, PU - and epoxy adhesives, PS, synthetic rubber, PVC Fraunhofer PAZ pilot plant A 395 B6n Magdeburg Bernburg A14 to Berlin A2 A9 Piesteritz Bitterfeld Leuna refinery, polymers, gases, catalysts, specialty chemicals, adhesives, fuels Germany s largest chemical park to Frankfurt Halle A38 Schkopau Leipzig A14 Piesteritz nitrogen products, urea, ammonia, nitric acid, melamine to Frankfurt A4 Zeitz to Dresden Zeitz adipic acid, oil refinery, waxes Motorway New Federal Road (4 lanes) to Munich IMG Sachsen-Anhalt mbh
27 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, Hanover, Brunswik, Salzgitter, Kassel, Dresden, Chemnitz, ZwickauMosel Opel: Wolfsburg Brunswick Hanover Iunder construction Berlin Ludwigsfelde Eisenach BMW: Leipzig, Berlin Salzgitter Magdeburg Dessau Neoplan: Halle Plauen Porsche: Kassel Kölleda Leipzig Leipzig Daimler: Eisenach Chemnitz Dresden Ludwigsfelde, Berlin, Kölleda Highway 4-lane national road Plauen IMG Sachsen-Anhalt mbh
28 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
29 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
30 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
31 11 SAXONY-ANHALT: RENEWABLE ENERGY Germany is Europe s strongest PV market with more than 39,5 GWp cumulated installations in 2015 New capacity of 1,175 MWp was installed in Germany in 2015 (Jan-Oct) World s leading PV R&D hub: highest density of PV institutes and companies conducting research worldwide Saxony-Anhalt has the highest share of renewable energy of all German States 52% of energy consumption is produced by renewables 6 Installed renewable power in GWp in Saxony-Anhalt Gases Biomass Water Power Windpower Solar IMG Sachsen-Anhalt mbh
32 12 SAXONY-ANHALT: LOGISTICS Basic data: logistics companies 3 bn Euros annual turnover Good to know: Hermes fulfilment center is the world s largest automated warehouse ( parcels per hour throughput) DHL European air cargo hub at Halle- Leipzig airport (247 operation) Strong research base: Fraunhofer IFF and University of Magdeburg with Logistics chair IMG Sachsen-Anhalt mbh
33 05 SAXONY-ANHALT: ITALIAN SUCCESS STORIES
34 01 SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS IMG Sachsen-Anhalt mbh
35 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 247 Over 70% market share in East Germany IMG Sachsen-Anhalt mbh
36 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
37 04 SAXONY-ANHALT: SUCCESSFUL ITALIAN INVESTMENTS Nordlam GmbH Start of project 1999 Total investment 50 million Euro 180 employees Work in 3 shifts 247 IMG Sachsen-Anhalt mbh
38 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
39 06 SAXONY-ANHALT: INCENTIVES
40 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
41 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
42 07 SAXONY-ANHALT: QUALITY OF LIFE
43 01 SAXONY-ANHALT: CORE REGION MAGDEBURG City of Magdeburg open for the future General data Magdeburg: 240,000 inhabitants Surroundings: 650,000 inhabitants 4 million inhabitants within 125 km radius IMG Sachsen-Anhalt mbh Soft facts State capital of Saxony-Anhalt, largest city in the state 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 43
44 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
45 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
46 04 SAXONY-ANHALT: CORE REGION HALLE Halle and Leipzig offering dynamic surroundings General data Halle: 240,000 inhabitants Leipzig: 500,000 inhabitants 5 million inhabitants within 125 km radius Soft facts Second largest city in Saxony-Anhalt First mentioned in the year 806 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
47 08 SAXONY-ANHALT: SUMMARY
48 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
49 GRAZIE PER LA L ATTENZIONE! SAXONY-ANHALT: BEST TO INVEST Site selection Financing issues Dealing with authorities Personnel management Screening investment opportunities Oliver Köhn Head of Business Development Tel.: +49 (391) Fax: +49 (391) Mail: oliver.koehn@img-sachsen-anhalt.de IMG Investment and Marketing Corporation Saxony-Anhalt Am Alten Theater Magdeburg Germany IMG Sachsen-Anhalt mbh
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