THE GERMAN CHEMICAL INDUSTRY
DECEMBER 21, 2018
Dr. Thorsten Bug,
Senior Manager Chemicals
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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
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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%
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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
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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
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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
© Germany Trade & Invest www.gtai.de 7
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
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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.
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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 %
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Chemical ExportsGermany is the second largest exporter of chemicals globally.
Chemical Exports by Country in EUR billion, 2017
Source: VCI, Chemiewirtschaft in Zahlen 2018, Table 61b.
0
20
40
60
80
100
120
USA Germany China TheNetherlands
Belgium South Korea Japan France Singapore Saudi Arabia
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German Chemical Exports
Source: VCI, Chemiewirtschaft in Zahlen 2017, Table 42b.
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%
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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
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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
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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
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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
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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
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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
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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
© Germany Trade & Invest www.gtai.de 19
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
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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
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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
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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
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Chemical Parks – Selected Locations
A
B
B
A
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A
B
Chemical Parks – Selected Locations
C
DC
D
© Germany Trade & Invest www.gtai.de 25
Chemical Parks – Selected Locations
E
F
E
F
A
B
C
D
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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
F. +49 (0)30 200 099-111
www.gtai.com
Dr. Thorsten Bug
Senior Manager Chemicals
T. +49 (0)30 200 099-603
Germany Trade & Invest
Foreign Trade and Inward Investment Promotion Agency
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