At the close of 2011, the Eurozone was hardly a place of celebration. The EU was coming apart at the seams; a failed experiment that could implode at any second. Or at least it was if your view of the world was filtered by British press headlines.

But behind the secret agendas, rancour, and sheer bloody mindedness, what is the real story? Petra Wassner is CEO of the economic development agency NRW.INVEST. Being hardwired into Germany’s most successful federal state, surely she would have a clearer view of the answer. We found out with a frank, exclusive interview…

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Advanced formula: with an annual turnover of 7.5 billion euros and more than 15.000 employees, the chemical industry is a driving force in Saxony-Anhalt.

The development of the German federal state is remarkable: Saxony-Anhalt is the centre of the German chemical industry and its progression is above national average – despite the European financial turmoil and economic crisis. With 5.5 billion euros, the turnover of the first nine months of 2011 was about one quarter higher than in the previous year. With a growth of 16% to 15.400 employees in the industry, the number of employees rose superiorly as well. The employers’ association ‘Nordostchemie’ estimates the total annual turnover of the chemical industry in Saxony-Anhalt to be 7.5 billion euros. Thus, the chemical industry reaches a turnover increase of about 30% and therefore distinguishes itself as the industry with the highest turnover growth.

The German federal State Saxony-Anhalt is located in the centre of Europe with excellent access to the emerging East European markets and to the well developed markets in Western Europe. Saxony-Anhalt is one of the world’s most modern and competitive locations and has evolved into one of the top locations for business in Europe. Its tradition of chemical and plastics industry is not the only point in favour. Italy’s Manuli Stretch, Europe’s largest manufacturer of stretch film, expanded its facility in the Dow Value Park in Schkopau recently. CEO Massimo Moroni credited the investment to “good experiences with the local employees” and being able to “find specialist companies in the surrounding region who can quickly meet our high expectations.” Other global players such as Dow Chemical, Total Raffinerie Mitteldeutschland, Bayer Bitterfeld, Domo, Linde or Hi-Bis are located there as well.

The state and its entrepreneurs especially benefit from five chemical parks. The industry obtains its support from a many-layered research landscape, including two universities, eight universities of applied science and twelve research institutes, as well as networks and cluster initiatives. Universities and external research establishments get the transfer of innovation started, along with the development of new products and procedures. The network of Central German chemical locations, the Central European Chemical Network (CeChemNet), promotes the development of new industrial sectors, as well as the concept of industrial parks.

Chemical Parks in Saxony-Anhalt: Both Birthplace and Pioneer

The chemical parks in Central Germany are pioneers in the global reorganization process of the chemical industry. After the German reunification, more than 17 billion euros have been invested in the restructuring and modernization of infrastructure and production plants at Saxony-Anhalt’s large chemical sites in Leuna, Bitterfeld Wolfen, Schkopau and Zeitz as well as in Böhlen (Saxony) and in Schwarzheide (Brandenburg). Chemical parks belong to the most important generators for the regional economic development today.

Excellent supply and removal conditions and functioning composites in the region’s chemical parks give the area’s locations numerous advantages: Through modern pipelines, various raw materials are transported and made readily available. Companies benefit from the merits of closed material cycles and synergies. Safety and environmental protection are on par with state-of-the-art technology.

Saxony-Anhalt – We Grow Chemistry in Parks

Many companies are still relying on traditional trade relations between the region and states in Central and Eastern Europe – if nothing else, due to its centrality in Europe. The industrial sector is on the up. The acceptance is still higher than elsewhere – an advantage for domiciled companies. They also benefit from highly qualified and skilled staff. In order to ensure this continues in the future, there is extensive cooperation between companies, and schools, technical colleges and universities. The success is evident in the high number of apprenticeships.

The drivers of this successful development are established network structures that are substantially supported by the state government of Saxony-Anhalt. In this way the network of the Central German Chemistry Locations CeChemNet and the Chemistry/Plastics Cluster of Central Germany combine the interests of powerful big industry as well as the innovative small and medium-sized companies. Innovations are increasingly becoming a determining factor - illustrated by the considerable promotion of the construction and expansion of research infrastructure by the Saxony-Anhalt state government.

Major investments of 2011

• From Belgium, Domo Capro Leuna, a manufacturer of chemicals and polymers has invested 20 million € to boost capacity at its caprolactam and nylon plant in Leuna as well as an additional 30 million € for a storage site there.
• Italy’s Manuli Stretch, Europe’s largest manufacturer of stretch film, expands its facility in the Dow Value Park in Schkopau. The company will invest 21 million € by 2012 to erect two new plants and a production hall.
• US-American Styron has expanded its synthetic rubber production facilities at Dow Value Park as well, investing 91 million € and creating 30 new jobs.
• Lanxess has opened a new chemical plant for water technology in Bitterfeld, investing 300 million € and generating 200 new jobs.

Incentives for investors – your advantages in Saxony-Anhalt

• Infrastructure: excellent transport and logistics infrastructure
• Market Access: proximity to the growing European markets and to the well established Western markets
• Competence: highly qualified, motivated workforce
• Productivity: high labour productivity
• Flexibility: fast and easy approval procedures
• Investment Security: stable political and legal system
• Investment Incentives: excellent range of incentives
• Development: innovative and varied research environment
• Dynamic Area: Saxony-Anhalt receives the most FDI in Eastern Germany

IMG Investment and Marketing Corporation Saxony-Anhalt
The Economic Development Agency of the German Federal State of Saxony-Anhalt
Dr Carlhans Uhle
Managing Director

Am Alten Theater 6
39104 Magdeburg
Germany

Tel.: +49 (0)391 568 99 0
Fax: +49 (0)391 568 99 50
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Web: www.invest-in-saxony-anhalt.com

Germany - Europe's leading economic nation – remains one of the most important markets for sales and investment. Around 82 million consumers live here, with a combined purchasing power of 1,558.1 billion euros. Germany accounts for 20 percent of Europe’s total economic output – more than any other European nation. Such a market environment offers most suitable investment opportunities for business development. The state of North Rhine-Westphalia (NRW) provides an excellent platform for unlocking this potential.

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