the german chemical industry - gtai a share of 29% in 2017, the german chemical industry has...

THE GERMAN CHEMICAL INDUSTRY

DECEMBER 21, 2018

Dr. Thorsten Bug,

Senior Manager Chemicals

© Germany Trade & Invest www.gtai.de 2

Agenda

1. The Chemical Industry Globally

2. The German Chemical Industry

3. Opportunities for Chemicals Producers in Germany

Main sources:• Cefic: The European Chemical Industry Councel, Brussels, www.cefic.org• Destatis: Statistisches Bundesamt (engl.: Federal Statistical Office), Wiesbaden, www.destatis.de• VCI: Verband der chemischen Industrie (engl.: German Chemical Industry Association), Frankfurt/Main, www.vci.de


Global chemical revenueMarket shares from NAFTA, Europe and Japan are progressively moving

to Asia.

Quelle: Cefic, Facts and Figures 2018

Global revenue in percentage share

2012: EUR 3,127 billion

2017: EUR 3,475 billion

Japan

NAFTA

Europe

Asia

Latin America

Africa, Australia, Middle east

17%

22%

49%6%

4%

2%

19% 58%

4%

3%

15%

1%


Global Chemical RevenueDespite the Asian market growth in recent years, Europe continues

to be a relevant chemicals market.

Quelle: Cefic, Facts and Figures 2018

EUR654 bn(19%)

2017:

EUR 3,475 bn

2012:

EUR 3,127 bn

EUR673 bn(22%)

Europe Asia NAFTA Japan Other


Global Chemical RevenueGermany is the world‘s third largest chemical market, being surpassed

only by China and the US in terms of revenues.

Chemical Revenue in EUR billion, 2017

Source: Cefic, Facts and Figures 2018; Total revenue globally 2017: EUR 3,475 billion.

0

500

1000

1500

China USA Germany Japan South Korea India Taiwan Brazil Russia


European RevenuesWith a share of 29% in 2017, the German chemical industry has

consolidated it‘s leading role in Europe during the recent years.

Quelle: VCI, Chemiewirtschaft in Zahlen 2018 (Table 60b)

European (EU-28) Chemical Industry Revenues in EUR billion, 2011–2017

164 161 165 154 149 147 155

80 78 77 78 73 66 73

55 52 52 52 50 5053

51 55 50 49 47 4852

46 38 38 4041 36

36

38 39 38 3836 36

39

36 37 38 3635 35

40

92 93 90 89 10386

94

0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016 2017

EUR

bill

ion

Rest of EU-28

Belgium

Spain

UK

Netherlands

Italy

France

Germany


Agenda






1230

65

100

135

171

458

598568 568

470

415

0

20

40

60

80

100

120

140

160

180

0

100

200

300

400

500

600

700

1960 1970 1980 1990 2000 2010

Nu

mb

ero

fem

plo

yee

sin

Th

ou

san

d

Rev

enu

esin

Eu

ro b

illio

n

The History of the German Chemical IndustryWithin 50 years, revenues increased by a nominal 5.4 % (real 3.1%) on

average a year. This resulted in a 14-fold productivity increase.

Revenues and Number of Employees of the German Chemical and Pharmaceutical Industry, 1960-2010

Quelle: VCI, 2013.Details: 1960 without Saarland. From 1964 on including West-Berlin; 1970, 1995, and 2008 new Classification. From 1991 Germany reunified.


German Chemical Companies StructureThe industry is “dominated” by small companies, whereas the lion’s

share of revenues are raised by large corporations.

Source: VCI, Chemiewirtschaft in Zahlen 2018, Table 18b.

Number of Chemical Companies, Employees and Revenues by Company Size, 2017

72

53

25

36

28

3

59

69

0

10

20

30

40

50

60

70

80

Number of companies Employees Revenues

1 - 49 employees 50 - 499 employees > 500 employees

in %


Chemical ExportsGermany is the second largest exporter of chemicals globally.

Chemical Exports by Country in EUR billion, 2017


0

20

40

60

80

100

120

USA Germany China TheNetherlands

Belgium South Korea Japan France Singapore Saudi Arabia


German Chemical Exports


60% 10%

NAFTA

Latin America

Rest of the world (ROW)

Asia

EU 28

(without Germany)

European non-EU

7%

European countries are dominating German Chemical Exports.

3%

17%

3%


Chemical Market Segmentation Fine and specialty as well as basic chemicals continue to constitute the

backbone of the German chemical production market.

Source: VCI, Chemiewirtschaft in Zahlen 2017 (Table 15a)

0

10

20

30

40

50

Petrochemicals Fine & SpecialityChemicals

Polymers Anorganic BasicChemicals

Detergents & CareProducts

EUR

bill

ion

2010 2011 2012 2013 2014 2015 2016 2017

Chemical Market Segmentation by Revenues in EUR billion, 2010–2017


German Chemicals ProductionDespite the economic downturn in 2009, the Basic Chemicals output in

Germany remained almost steady since 2000.

Source: VCI, Chemiewirtschaft in Zahlen 2016, Table 4a and 4b; Oxygen in million m3 under normal conditions..

0

2.000

4.000

6.000

8.000

Tho

usa

nd

to

ns

2000 2005 2010 2015

Production Volumes of Basic Chemicals in Germany, 2000–2015


Germany‘s private R&D spendingGerman chemical industry R&D expenditure was EUR 4.2 billion

in 2017, making the sector the fifth strongest in Germany.

Source: VCI: Chemiewirtschaft in Zahlen 2018 (Table 48)

R&D Expenditure by Industry, 2006–2017

19,8 21,0 23,3 21,8 23,3 25,7 27,2 28,132,0 34,4 34,8 34,5

10,6 9,29,9

8,38,5

9,410,1 10,5

10,811,0 11,3 11,2

4,7 4,85,1

4,95,1

5,55,8

5,9

6,36,0 6,2 6,3

5,4 4,5

4,75,1

4,8

5,35,8

6,0

5,86,2 6,5 6,2

3,7 3,5

3,63,6

3,5

3,74,0

3,9

4,34,2

4,3 4,2

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chemicals

Pharma

Mechanicalengineering

Electricalengineering

Automotive


Chemical PatentsGermany is number three spot for European chemical patent

registrations, only surpassed by the US and Japan.

Source: European Patent Office (EPO)

European Chemical Patents granted by the EPO by Source Country in %, 2007–2017

24 26 25 25 27 27

17 15 17 17 15 17

23 21 20 19 18 16

77 7 6 7 7

55 5

5 5 4

44 4

3 4 4

3 4 44 3 3

4 4 44 3 3

13 14 14 16 16 17

0

10

20

30

40

50

60

70

80

90

100

2007 2009 2011 2013 2015 2017

ROW

China

Italy

Netherlands

UK

Switzerland

France

Germany

Japan

USA


Electricity generationIn the last 25 years Germany got “greener” as Renewables has grown

from 2% up to 19%. Nuclear energy decreased by 1/3 in the same period.

Electricity Generation in Germany by Energy Carrier in %, 1990–2015

Source: AG Energiebilanzen e.V. (http://www.ag-energiebilanzen.de/)

33 3027 26 25 29

31 3235 32

28 20

24 23 2421

1820

8 8 911

1210

2 3 3 612

19

0%

25%

50%

75%

100%

1990 1995 2000 2005 2010 2015

Renewables

Natural Gas

Hard Coal

Nuclear Energy

Lignite

Other sources


Investments in EuropeThanks to market attractiveness, most chemical investments in Europe

for the period 2013 to 2017 occurred in Germany.

Number of Investments in Europe, 2013–2017

Quelle: fDi markets. Total number of investments (1,440): Chemistry (696), Plastics (576), Rubber (168). Graph represents 89% of all investments.

50

100

150

200

250

300

Chemicals Plastics Rubber


The Chemical Cluster Landscape

Chemical Cluster offer added value to

their members:

• as networking platform for R&D

institutes, companies, and authorities

within the region

• through strategic alliances with

international chemical sites in Europe,

Asia and the US

• strengthen the cluster members’ global

competitiveness


Agenda






Raw Materials SupplyGermany´s chemical industry regions are well connected to the

European pipeline grid.

Infrastructure of raw materials supply:

• Crude oil via pipelines from:

– Russia

– the Mediterranean Sea

– France

– the North Sea

• Crude oil processing via:

– 14 refineries

– 8 steam crackers

• Pipelines for:

– ethylene and propylene

– natural gas

– hydrogen

– carbon monoxide


Phletora of LogisticsAdditionally to the pipeline grid, Europe’s longest autobahn, rail and

waterway network connects Germany with its nine neighboring states.

Autobahn 12,550 km

Railways 40,330 km

Waterways 7,450 km

Seaports 9

Major Airports* 12


Chemical Parks „Plug & Play“ concept

Source: Factsheet „Chemical Parks in Germany“, Germany Trade & Invest, February 2017

Chemical Parks – Advantages:

• About 30 chemical parks offer cost-

efficient and unique benefits through:

– excellent infrastructure

– chemical raw materials via pipelines

– gases and steam via pipelines

– secure energy supply

• Site operators offer expertise and

services from one source

• Investors choose the services from

site operator that suits their business

model best


Chemical Parks – Selected Locations

A

B

B

A


A

B


C

DC

D



E

F

E

F

A

B

C

D


Germany Trade & Invest

© 2017 Germany Trade & Invest

All information provided by Germany Trade & Invest has been put together with the utmost care. However we assume no liability for the accuracy of the information provided.

Contact

Berlin Headquarters

Friedrichstraße 60

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Germany

T. +49 (0)30 200 099-0

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www.gtai.com

Dr. Thorsten Bug

Senior Manager Chemicals

T. +49 (0)30 200 099-603

[email protected]

Germany Trade & Invest

Foreign Trade and Inward Investment Promotion Agency

http://www.gtai.com/

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the german chemical industry - gtai a share of 29% in 2017, the german chemical industry has...

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