Chemical Industry
The Elementary Stuff
The chemical industry in Germany plays a key role in the country's economy. Claiming a share of 12 percent of the global chemical market, Germany has become the third largest chemical producer worldwide and the number one in Europe.
Several chemical and pharmaceutical giants have their roots in Germany. Nowadays, these companies are well known worldwide due to their enormous size and long standing existence. The chemical industry alone employs 436,000 people and generates annual revenue of above 42 billion Euros. The German chemical sector has also become the main driving force behind Germany's strong position in international trade.
Even though Germany has many established large chemical companies, over 90 percent of the existing 2000 enterprises are mid sized companies with less than 500 employees. These companies employ more than 25 percent of the workforce and generate around a quarter of the revenue in the industry.
The German chemical industry concentrates its production on primary and consumer products. This includes products like plastics, lacquer and synthetic fibers for the production of industrial products and pharmaceuticals, detergents and cosmetics for the end consumer.
According to the Association for the German Chemical Industry (VCI), the demand for chemicals coming from Germany is experiencing an upward trend. The forecast for 2007 projects an output growth of about four percent and a sales increase of 7.5 percent.
To obtain updated and reliable information about the chemical industry in Germany, it is necessary to know the most important organizations that serve as a helpful resource within the German chemical sector:
The Association for the German Chemical Industry (VCI) is the first stop for anyone interested in the German chemical sector. This group represents the interests of 1.600 German companies and foreign subsidiaries in the chemical branch.
The VCI provides on its website an updated overview that includes the latest news in the sector. It also offers together with the German Association of Chemical Trade and Distribution (VCH) a database for products, services and manufacturers in the chemical industry called Chemcompass.
The German Association of Chemical Trade and Distribution (VCH) acts as a service and information center for its members. The Association concentrates on topics like the appropriate storage and handling of chemicals. It mainly overviews and supports its member in the following areas: the chemicals and labor protection laws, environmental law, the marketing of substances, the transportation of dangerous goods and environmental protection.
The state of North Rhine Westphalia, which is Europe's most important chemical region, also offers helpful information on the chemical industry. The initiatives ChemSite NRW and ChemCologne NRW provide interested investors a wide range of information and support on both finding the right site for the location of new chemical companies, and the planning, construction and the maintenance of such establishments.
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