Saxony-Anhalt: Internationally appreciated location quality
Located in the centre of Germany, Saxony-Anhalt is highly valued by foreign investors and leads the Eastern German federal states with foreign direct investments. In Saxony-Anhalt, international investors find an attractive investment environment. The lead markets, which are supported by the federal state with their commercial and scientific development, are based on the dynamic power of growing industries, as well as the strength of the traditional branches in the state.
The established industries in the federal state offer attractive value-added chains with local companies in which investors can find the raw materials or technologies that they require. It therefore comes as no surprise that the top foreign investments in 2016 in Saxony-Anhalt not only included investors who have opted to set up locally – the numerous expansion investment projects are also a testament to the excellent quality of location in terms of economic growth.
Top Investments in Saxony-Anhalt 2016
The German T-Systems, Deutsche Telekom's business customer arm, expands it’s cloud data center in Biere, near the federal state’s capital Magdeburg. Since 2014, T-Systems has been operating its largest and most modern data center in Germany. It is connected to the data center in Magdeburg to a so-called twin-core data center. About 170 Million Euro will now be invested into the expansion of the data center. "What has originated here in Biere and will develop in the future is a prototype project of the highest quality. In the field of the IT industry, Saxony-Anhalt is thus playing in the European championship. The fact that Deutsche Telekom chose our state as the location for its data center, and is now further expanding it, makes us proud. At the same time, it is evidence that companies find the best conditions for their business in our state ", explained Dr. Reiner Haseloff, Prime Minister of Saxony-Anhalt, at the occasion of laying the foundation stone for the expansion.
Greatview Aseptic Packaging, company of the Chinese Greatview Group, invests up to 23 million Euros in the expansion of its German factory in Halle (Saale). A supplementary state-of-the-art printing line will be commissioned in mid-2017. Additional equipment and building expansion will add capacity, flexibility and efficiency to Greatview’s operations while helping to deliver service, responsiveness and optimal products to customers. An expanded logistics hub will allow reduced movement and parking of road transport on local roads, as well as a direct rail connection for incoming and outgoing goods. “This investment, which will more than double the annual production capacity of the factory, is a vote of confidence in the continuing growth in our market share”, said Jeff Bi, CEO of Greatview Aseptic.
With the foundation of Nielsen Tele Medical GmbH in Saxony-Anhalt’s state capital Magdeburg, the US concern Nielsen, global leader in market research, entered the medical device and service market. Nielsen developed the world’s first dry contact wireless EEG headset with full 10/20 medical compliant capabilities it is called the F1 headset. “The wireless dry electrode headset allows continuous neurological monitoring of high-risk patients from the comfort of their home by the measurement of their brain activity. EEG data will be transmitted wirelessly, allowing the doctor to make the diagnosis at another location such as their practice. The headset has additional channels with which vital functions such as heart rate may also be monitored”, explained Robert J. Stokes, CEO of Nielsen Tele Medical GmbH. The company further developed and medically tested the globally unique wireless EEG headset with neurologists from the medical faculty at Otto-von-Guericke University Magdeburg.
The US company Trinseo announced a capacity expansion for its rubber production on its site in Schkopau, Saxony-Anhalt. The asset upgrade at Trinseo’s synthetic rubber manufacturing complex in Schkopau, Germany, will add 50 kilotons of Solution-Styrene Butadiene Rubber (S-SBR) capacity, increasing the company’s global S-SBR production by 33%. This additional capacity is expected to be online in January 2018. “This expansion in Schkopau is the fastest solution to meet our customers’ growing demand for our SPRINTAN™ Rubber products, as well as next generation development grades of advanced S-SBR”, said Hayati Yarkadas, Senior Vice President and Business President, Performance Materials.
With the investment in a new filter plant at the glass factory in Thalheim, the US concern Guardian Glass marked the beginning of the planned modernization of the factory, which was built in 1996. The glass furnace, the heart of the factory, is also being rebuilt. Work on this is to start at the beginning of 2017. About 50 Million Euro will be invested at the site altogether. Around 340 people are currently employed in Thalheim. They make glass products for commercial and residential buildings. The factory is among the leading manufacturers of laminated safety glass, thermal insulation glass and sun protection glass in Germany.
Top Investments in Saxony-Anhalt 2015
Saxony-Anhalt is the federal state of easy access: a closely networked logistical and business infrastructure ensures easy access to European markets, one of the highest rates of investment support in Germany, and all-round support from the federal state, which guarantees a rapid commercial implementation of investment projects.
Investors support is offered by the Investment and Marketing Corporation Saxony-Anhalt mbH (IMG). As the investment promotion agency of the federal state, it supports investors during the whole investment process – from the first project idea to the final business implementation. In 2015 and 2016, IMG was honored for the quality of its investors' service with the international „Top Investment Promotion Agency Award“ from Conway Data Inc. as one of the two best regional development agencies in Western Europe.
Invest in Saxony-Anhalt – IMG offers support as one-stop-agency, with a full range of services and without charge.
The following companies have sited or expanded in Saxony-Anhalt in 2015 and therefore contributed to the success of the state.
Around the world from Saxony-Anhalt
Radial (formerly eBay Enterprise), a leading global service supplier for online retailing, has opened a new, state-of-the-art ecommerce logistics centre in Halle (Saale) in the south of Saxony-Anhalt. The Fulfilment Centre was newly developed specially by the real estate group Goodman for Radial, which will also take over its management. The multi-million euro investment offers on its ca. 28,000 sqm about 220,000 storage racks and 7,000 high-bay storage racks. It only took about nine months to complete the investment in Halle from its announcement to its implementation. 290 new employees are now employed at the site. The logistics centre in Halle is the first of its kind to be operated by Radial in Germany. Tobias Hartmann, President of Radial, explained on the occasion of the festive opening, that it was only possible to successfully complete the rapid planning and commissioning of the centre with the good cooperation with the city of Halle, the federal state of Saxony-Anhalt, and the responsible authorities.
The budget discounter Mäc Geiz, a subsidiary of the Austrian MTH Retail Group, has invested several million Euros in its logistics centre in Landsberg near Halle, where the company is headquartered. The central warehouse has been expanded to 16,500 square meters and now encompasses 31,000 pallet spaces. Mäc Geiz was founded in Halle in 1993 and now has approximately 270 branches.
Invest for innovation
The Brazilian producer of polypropylene, Braskem, invested around 10 million Euros in its site in the DowValue Park, which is located in the city of Schkopau and is one of a total of five chemical parks in Saxony-Anhalt. The company put a Distributed Control System into operation. In a highly complex changeover process that is unprecedented worldwide, the entire production control system of the Braskem Europe GmbH was recently replaced in just a single step, reprogrammed from scratch and reinitialized as a completely independent process control system. “This project is a vote of confidence, because it shows that the global company Braskem has long term plans for the Schkopau site," said Dr. Reiner Haseloff, Prime Minister of Saxony-Anhalt, on the occasion of the festive inauguration. With the successful implementation, the Braskem-Schkopau site serves as a pilot project for the other plants maintained by the Group worldwide.
The Dutch chemical company AkzoNobel has made a multi-million euro investment into a a new system for the debromiding of chlorine. In 2002, AkzoNobel had taken over the complete production of chlorine in the chemical park of Bitterfeld-Wolfen and benefits from the chemical and competence network on-site. The plant is not only located in the middle of important consumers of chlorine, sodium hydroxide and hydrogen, but it also recovers starting materials for its own production from them. Since 2002, AkzoNobel is continuously growing at its site in Bitterfeld-Wolfen and has consistently invested in the location. Through this, the annual capacity from an original 75,000 tonnes could be increased to 100,000. "The business environment here is exactly right: We have consistently been able to develop the capacity of our plant since its commissioning,” said Jürgen Baune, who is responsible for business with chlorine and alkalis at AkzoNobel. “In addition to the region's exceptionally positive approach to chemicals, our qualified and highly committed employees are another positive location factor: they are well educated, willing to work hard and extremely reliable. This also supported the decision in favour of the investment."
Products for national and international markets
ZUEGG Germany GmbH, the subsidiary company of the Italian specialist for fruit processing ZUEGG, has invested 2.6 million Euros in a second production line at its site in Zörbig. The site’s production, which currently amounts to more than 15 million tonnes of jam, is to be increased to 5 million tonnes in 2020. The plant in Zörbig was taken over by the Italian company ZUEGG, which has six plants worldwide, in 2002. The location in Saxony-Anhalt has a special role within the corporate group. Only the Zörbig plant is responsible for the jam production and its worldwide distribution. The production of juices and fruit preparations takes place at the other five plants.
Novelis, headquartered in the USA, has opened a new automobile production line at its Nachterstedt plant after a construction period lasting only 18 months. The plant manufactures aluminium panels for Jaguar Land Rover, among others. The company invested approximately 62 million Euros and created 56 new jobs. With 1,200 employees currently working at the plant, Nachterstedt in Saxony-Anhalt is now the largest of the nine plants that Novelis operates in Europe. "Nachterstedt is the location of the future in Europe," explained Erwin Mayer, President of Novelis Europe, at the opening. And his words weren’t without reason, because this marks the first expansion investment since the company opened its site in October 2014, in which Novelis invested approximately 200 million Euros and created 200 jobs.
The Belgian producer of aluminium, Coil, has announced plans to invest 22 million Euros in expanding its site in Bernburg. A second production line is to be built for the finishing of aluminium strips. In this context, a logistics hall with 6,000 square meters was built last year for the future storage of the aluminium strips.
The INNOWO Print AG, belonging to the Danish company Fibertex Personal Care, has invested several million euros in the expansion of their site in Ilsenburg in the Harz region. INNOWO Print is market leader in Europe for the direct printing on non-wovens in the hygiene industry and is active for the leading brand manufacturers in the segment. The new production line is already the second investment in the expansion of the company, which was founded in 2007. The hall extension and new printing machine not only increased the production capacity, but also create additional jobs. "With this investment, we are strengthening above all our position on the market; we will be able to further develop lasting relationships with our customers, and we and all of the employees at the Ilsenburg site are happy to be continuing to grow”, said Albert Steffen, chairman of INNOWO Print AG. Starting off in 2007 with five employees, the company now employs more than 60 people.
The company Didier-Werke AG, subsidiary of the Austrian firm RHI AG and an expert in high-temperature resistant specialist ceramics, has invested about four million Euros in the expansion of its production capacities in its Aken plant. An ultra-modern new press for the production of refractory bricks for the steel industry is now manufacturing up to 450 tonnes of bricks per week in a variety of different formats. In this way it has proven possible for the production volume to be increased by about 25 percent. By the investment, 14 new jobs were created.
Saxony-Anhalt: Powerhouse region for global players
Study on FDI:
Sachsen-Anhalt again number one in foreign direct investment in eastern Germany
Saxony-Anhalt has arrived on the map of global players
According to the yearly compiled European Investment Monitor from the auditing and accounting company Ernst & Young, Saxony-Anhalt again is high on the agenda by foreign investors. “We are very happy that also this year we occupy the top position among the Eastern federal states with the number of Foreign Direct Investments and new jobs being created”, states Dr. Carlhans Uhle, managing director of the Investment and Marketing Corporation (IMG) of Saxony-Anhalt. “Saxony-Anhalt has developed to an attractive investment location within Germany and, above all, worldwide: Our state has arrived on the map of the global players,” continues Uhle. “For the quality of our investor service, IMG recently was honored with the international „Best to Invest Top Agency Award 2015“ as best regional development agency in Western Europe.
According to the European Investment Monitor by Ernst & Young, altogether 18 foreign companies in 2014 have made economic investments, either to establishing a new company in Saxony-Anhalt, or expanding an existing one, in order to increase their production capacity. In total, 923 new jobs could be created through these international investments.
Alone since the year 2000, Saxony-Anhalt has supported about 200 investments of foreign companies. Foreign investors have poured about € 3 billion into the state, creating about 18.000 jobs. The USA being number one amongst them by investing more than € 400 million, creating about 1.500 new jobs and securing about 2.600 jobs.
The following companies have sited or expanded in Saxony-Anhalt in 2013/2014 and therefore contributed to the success of the state.
Information and Communications Technology
Saxony-Anhalt is an increasingly well-known IT location in the headquarters of industry giants. T-Systems, Deutsche Telekom's corporate customer arm, has opened the campus for the largest cloud data center in Germany in the federal state of Saxony-Anhalt. By the end of the roll-out phase, the 5,400 square-meter server park will also be one of the largest in Europe.
By that, T-Systems is betting on the good scientific and transport infrastructure. The data center operates under the strictest security measures in response to increasing demand for secure cloud services. Together with an already existing T-Systems data centre in Magdeburg, the new structure forms a TwinCore data centre. The US company Sitel, a global provider of customer support services, opened a new branch in Magdeburg.
This has so far created approximately 400 new jobs. "We have made good experiences here in the last years and cooperated excellently with politics and economy. Nothing stands in the way of further growth of our new site," said Christian Steinebach, managing director of Sitel Deutschland, Eastern Europe and the Netherlands.
Chemical and Plastics Industry
The chemical and plastics industry is among the oldest industries in Saxony-Anhalt and offers the best prospects. The company Gummiwerk Schönebeck, which is part of the Russian Donobuv Group, expanded its capacity with the construction of a new production hall. Approximately 2.4 million euros will be invested in the new production hall for the manufacture of rubber compounds for shoe production and will thereby create additional jobs.
The Icelandic company Promens Packaging GmbH opened a new factory in Theeßen near Magdeburg for the production of plastic containers. Promens not only benefits from the high technical standards of the industrial property. The good infrastructure and the central location in Europe were also decisive factors. "The new site in Theeßen provides us with the foundation to develop our business growth and provides an entirely new dimension to our internal logistics", explained Dragan Stjepanovic, managing director of Promens Chemical Packaging.
The Belgian chemical company Solvay brought a new plant into operation in Genthin for the production of speciality surfactants. Approximately 30 new jobs were created through the investment. "Solvay is focused on the long term and we feel very comfortable in Saxony-Anhalt. We appreciate the efficient work of the authorities as well as the industry-friendly environment", says Dr Andreas Meier, Chairman of the Management Board of Solvay GmbH. The company has long been associated with Saxony-Anhalt as it operates a plant for soda production in Bernburg.
Mechanical and Plant Engineering
Mechanical and Plant Engineering
AGCO Hohenmölsen GmbH, which belongs to the US AGCO Corporation, expanded its production site in the district of Burgendlandkreis and invested approximately 15 million euros in the development of a centre of excellence for manufacturing tractor components. The company thereby created 65 new jobs.
The company Technoguss Tangerhütte expanded its production site for raw castings for gear units and valves, in Tangerhütte in the north of Saxony-Anhalt. The company invested about US$ 1 million into two new core shooter machines. With the new technical facilities, it is intended to increase the production from 10,000 to 15,000 tons of castings per year.
The Austrian company Pöttinger Sätechnik GmbH has invested about US$ 12.5 million into the expansion of its site in Bernburg. Currently about 130 employees manufacture modern agricultural machines. With a new production hall and the expansion of the storage area, the company aims to double its turnover within the next years. The production site in Bernburg is the technical competence center for seeding within the Pöttinger Group.
The mechanical and plant engineering industry is the largest and most important sector in Saxony-Anhalt. 150 years of experience make their mark – and convince foreign companies to invest. Novelis, which is headquartered in the USA, opened the world's largest recycling centre for aluminium in Nachterstedt. The company has invested around 200 million euros in the new plant and created some 200 jobs. Novelis is a leading manufacturer of rolled aluminium products and aluminium recycling. The company also announced the investment of 62 million euros in a new production line for aluminium sheets for the automotive industry. This will increase the production capacity and create up to 120 additional jobs.
In December, the Befesa Aluminium Germany GmbH, part of the internationally acting Befesa Group, brought a new smelting works for the production of aluminum alloys into operation. Befesa’s investment into the location near the city of Bernburg was about US$ 37.7 million and is creating 60 new jobs. „The siting of Befesa as a result of the activities by the US-based company Novelis here in Saxony-Anhalt is an example of the region’s development to a location where global companies form networks and expand value chains”, explained Dr. Carlhans Uhle, Managing Director of IMG – the Investment and Marketing Corporation of Saxony-Anhalt, which had supported Befesa during the investment process.
Saxony-Anhalt has always been an ideal location for the food industry due to the excellent supply of raw materials. The Swiss baked goods manufacturer ARYZTA establishes a new production hall in the city of Eisleben as part of its largest single investment in the German market. The new production hall will be built on the company grounds of the Klemme AG, which belongs to ARYZTA group since 2013. Approximately 100 million euros has been invested and 295 new jobs are created with the extension investment.
Cargill Deutschland GmbH, a company originating from the USA, invested around 60 million euros in the construction of a production facility for the manufacture of high-quality alcohol for the beverage, cosmetic and pharmaceutical industries. "We are delighted with this investment decision since it creates 10 new jobs at our site in Barby", says Dr Christoph von Reden, managing director of Cargill Deutschland GmbH. The new production facility is being constructed directly next to Cargill's wheat starch plant with approximately 150 employees.