the german chemical industry - gtai - · pdf filegermany is the world‘s third largest...

THE GERMAN CHEMICAL INDUSTRY

DECEMBER 15, 2017

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 revenue With strong growth rates in the 10-years-period 2006-2016, the Asian

Chemical Industry has doubled their share in global revenues.

Quelle: Cefic, Facts and Figures 2017

Global revenue in percentage share

2006: EUR 1,803 billion

2016: EUR 3,360 billion

Japan

NAFTA

Europe

Asia

Latin America

Africa, Australia, Middle east

24%

32%

29%

7%

5%

3%

18% 57%

4%

4%

16%

1%


Global Chemical Revenue Despite China’s strong growth, Europe continues to be a

relevant market.

Quelle: Cefic, Facts and Figures 2017

EUR 598 bn (18%)

2016:

EUR 3,360 bn

EUR 573 bn (32%)

Europa Asien NAFTA Japan Andere

2006:

EUR 1,803 bn CAGR = 0,4%


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

only by China and USA in terms of revenues.

Chemical Revenue in EUR billion, 2016

Source: Cefic, Facts and Figures 2017; Total revenue globally 2016: EUR 3,360 billion.

0

500

1000

1500

China USA Germany Japan South Korea India France Taiwan Brazil Italy


European Revenues With a share of 29% in 2016, the German chemical industry has

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

Quelle: VCI, Chemiewirtschaft in Zahlen 2017

European (EU-28) Chemical Industry Revenues in EUR billion, 2011–2016

164 161 165 154 149 145

80 78 77 78 73 71

55 52 52 52 50 50

51 55 50 49 47 46

46 38 38 40 41 36

38 39 38 38 36 36

36 37 38 36 35 35

92 93 90 89 76 88

0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016

EUR

bill

ion

Rest of EU-28

Belgium

Spain

UK

Netherlands

Italy

France

Germany


Agenda






12 30

65

100

135

171

458

598 568 568

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

er o

f em

plo

yee

s in

Th

ou

san

d

Rev

enu

es in

Eu

ro b

illio

n

The History of the German Chemical Industry Within 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 Structure The industry is “dominated” by small companies, whereas the lion’s

share of revenues are raised by large corporations.

Source: VCI, Chemiewirtschaft in Zahlen 2017, Table 18b.

Number of Chemical Companies, Employees and Revenues by Company Size, 2016

72

8 4

25

34

27

3

58

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 Exports Germany is the second largest exporter of chemicals globally.

Chemical Exports by Country in EUR billion, 2016


0

20

40

60

80

100

120

USA Germany China Belgium South Korea TheNetherlands

Japan France Saudi Arabia Singapore


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.

0

10

20

30

40

50

Petrochemicals Fine & SpecialityChemicals

Polymers Anorganic BasicChemicals

Detergents & CareProducts

EUR

bill

ion

2010 2011 2012 2013 2014 2015 2016

Chemical Market Segmentation by Revenues in EUR billion, 2010–2016


German Chemicals Production Despite 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 spending German chemical industry R&D expenditure was EUR 4.3 billion

in 2016, making the sector the fifth strongest in Germany.

Source: VCI: Chemiewirtschaft in Zahlen 2017, Table 48.

R&D Expenditure by Industry, 2006–2016

19,8 21,0 23,3 21,8 23,3 25,7 27,2 28,1 32,0 34,4 34,8

10,6 9,2 9,9

8,3 8,5

9,4 10,1 10,5

10,8 11,0 11,3

4,7 4,8 5,1

4,9 5,1

5,5 5,8

5,9

6,3 6,0 6,2

5,4 4,5

4,7 5,1

4,8

5,3 5,8

6,0

5,8 6,2 6,5

3,7 3,5

3,6 3,6

3,5

3,7 4,0

3,9

4,3 4,2

4,3

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Chemicals

Pharma

Mechanicalengineering

Electricalengineering

Automotive


Chemical Patents Germany is number two spot for European chemical patent registrations,

only surpassed by the US.

Source: European Patent Office (EPO)

European Chemical Patents granted by the EPO by Source Country in %, 2007–2015

24 26 25 25 27

23 21 20 19 18

17 15 17 17 15

7 7 7 6 7

5 5 5

5 5

4 4 4

3 4

3 4 4 4 3

4 4 4 4 3

13 14 14 16 16

0

10

20

30

40

50

60

70

80

90

100

2007 2009 2011 2013 2015

ROW

China

Italy

Netherlands

UK

Switzerland

France

Japan

Germany

USA


Electricity generation In 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 30 27 26 25 29

31 32 35 32

28 20

24 23 24 21

18 20

8 8 9 11

12 10

2 3 3 6 12

19

0%

25%

50%

75%

100%

1990 1995 2000 2005 2010 2015

Renewables

Natural Gas

Hard Coal

Nuclear Energy

Lignite

Other sources


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

for the period 2011 to 2015 occurred in Germany.

Number of Investments in Europe, 2011–2015

Quelle: fDi markets. Total number of investments (1338): Chemistry (651), Plastics (536), Rubber (151). 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 Supply Germany´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 Logistics Additionally 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

D C

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

10117 Berlin

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/

mailto:[email protected]

the german chemical industry - gtai - · pdf filegermany is the world‘s third largest...

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