Powerhouse region for global players

Saxony-Anhalt’s ideal location in Central Europe, its state-of-the-art infrastructure, its excellent investment incentives and its innovative R&D environment have made Saxony-Anhalt Eastern Germanys leading destination for FDI. Numerous companies contributed to the success of Saxony-Anhalt. Since 1991, Saxony-Anhalt supported about 330 investments of foreign companies. Foreign investors have poured about € 10 billion into the state, creating more than 20.000 jobs – the USA being number one amongst them by investing more than € 2 billion, creating about 7.000 new jobs and securing about 6.000 jobs.

Information and Communications Technology
Saxony-Anhalt is an increasingly well-known IT location in the headquarters of industry giants: US-American IBM is setting up its first German IT services centre in the state’s capital of Magdeburg and will create about 300 new jobs.  IBM’s belief in Magdeburg as a business location is unequivocal. Gregor Pillen, IBM’s General Manager of Global Business Services, offers particularly high praise for its close proximity to institutions of higher learning and universities of applied science. Proximity to transport infrastructure is another main reason IBM is investing in Saxony-Anhalt. “We want to offer our national and international clients high-value IT services ‘Made in Germany,’ and we believe Magdeburg offers the ideal conditions to do so,” says Pillen.

T-Systems, a subsidiary of Deutsche Telekom, is also betting on the area’s scientific and transport infrastructure. When complete, the data centre near Magdeburg will house a 34,200-square-meter server park, making it the largest data centre in Europe. Together with an already existing T-Systems data centre in Magdeburg, the new structure will form a TwinCore data centre.

Chemical and Plastics Industry
As fossil fuel reserves continue to dwindle, US-American Puralube Holding GmbH deepens its investment in waste oil recycling. Puralube Holding GmbH is investing € 40 million in the construction of a third refining plant, thereby creating some 50 new permanent positions. Construction of the new plant, in which high quality base oils will be produced using recycled waste oil, is slated for completion in the autumn of 2014. At that point, the processing capacity of the enterprise will reach 240,000 tonnes of waste oil per year.

US-American Styron has expanded its synthetic rubber production facilities as well at Dow Value Park as well, investing € 91 million and creating 30 jobs. “Schkopau is once again Europe’s rubber site number one.” says Ralf Irmert, Managing Director of Styron Deutschland GmbH, which continues this division as an independent company.

Chelian CM CHEMIEMETALL GmbH has built a new production plant for metallurgical powders at the chemical site Bitterfeld-Wolfen. Centrally situated in Europe, CM CHEMIEMETALL is able to promptly deliver to their European customers’ doorstep. Dr Klaus Andersson, Managing Director of CM CHEMIEMETALL, states: “Only with extensive investments will we be able to occupy and expand our leading position on the world markets.”

Japanese Hi-Bis is also expanding its site at Bitterfeld. An investment of € 50 million assures that new jobs will be created once more. The new plant will still manufacture speciality bisphenol, a type of chemical compound used by Bayer AG to produce a brand of highly heat resistant and transparent polycarbonate called Apec®. The new investment is a joint venture of Hi-Bis, Honshu Chemical Industry Co, Mitsui & Co. Deutschland GmbH and Bayer AG.

Belgian Solvay is enlarging its business site with the construction of a production plant for special tensides in Genthin. "With this investment, we pushing forward with our successful growth strategy of expanding production and development opportunities in a market- and customer-oriented fashion," said Emmanuel Butstraen, Chairman of Solvay Novecare. "We are therefore not only strengthening only our presence in the region, but are also able to build upon our capacities in a competitive manner by investing in an established industrial estate." The new site will add another 30 jobs to the 400 employees of Solvay in Bernburg.

Mechanical and Plant Engineering
Russian Promet Safe has decided on the location of Saxony-Anhalt to build a production facility in Halle (Saale) this summer. Promet Safe is Eastern Europe’s biggest manufacturer of steel safes and security furniture and is set to invest some € 10 million, thereby creating approx. 50 jobs. The highly specialized company will in the future secure production for the German and entire Western European area from Saxony-Anhalt. The Managing Director of the company, Evgeny Petrov, sates: ‘It wasn’t easy for us to find an ideal location, because we want our quality products to reach both the German and Western European markets. The situation and connection of the Halle (Saale) industrial location provides us with everything we need – from the property itself through to the manpower – for our products to be successful in Western Europe.’

Spanish technology group Befesa also decided on the location of Saxony-Anhalt. A new smelting works for the production of aluminium alloys will be built. Befesa is investing about € 30 million and creates 60 new jobs.

Belgian COIL
has invested € 22 million in its plant in Bernburg, creating 45 jobs. COIL is the world’s largest architectural and industrial anodiser. Technoguss Tangerhütte GmbH is investing € 3.2 million in a new casting plant. Technoguss produces parts for business in the field of transmission and ship building sector. US Engineering AG is investing € 2.3 million in a new plant for the production of impregnating machines for electric motors. US Engineering AG is creating ten jobs.

Life Science
ThyssenKrupp is investing a total of € 20 million to extend its research and development activities in the field of biochemicals based on renewable raw materials. The first multi-purpose fermentation plant for the continuous production of organic chemicals is now in Leuna in the federal German state of Saxony-Anhalt. An interdisciplinary team of engineers and scientists in ThyssenKrupp’s plant engineering division has developed a process for the production of lactic acid. The technical centre for the research of biochemicals moved from Leipzig in Saxony to Leuna in Saxony-Anhalt in August 2012.

British EKF-diagnostic GmbH also expands its production and logistics centre in Barleben – investing € 3.6 million and creating 17 new jobs. EKF-diagnostics produces devices for blood analyses which help to diagnose diseases such as anaemia, diabetes and concomitant diseases.

UP Industries invests € 7.8 million into the production and product development of pharmaceutical and hypoallergenic nutrition for infants in Stendal, creating 16 new jobs.

Logistics Industry
German Nagel-Group and British Helios Europe are investing € 19 million in a logistics centre and created 50 jobs. Tobias Nagel, a Nagel-Group partner, states: “Foodstuffs require short channels. That is why this region has enormously gained in attractiveness due to the eastward expansion of the EU and thanks to the excellent infrastructure for our European logistics network.”

Packaging and Paper Industry
Zellstoff Stendal GmbH is investing € 40 million in its plant in Arneburg to expand its production plant and to purchase new steam turbines. The plant in Saxony-Anhalt is the largest and technically most advanced manufactures of NBSK (Northern Bleached Softwood Kraft) market pulp in Central Europe. Beside this Zellstoff Stendal operates the largest biomass power plant in Germany with a power performance of 100 MW. Zellstoffwerk Stendal GmbH belongs to the American-Canadian Mercer Group.