Scientific apparatus and glassware on laboratory bench awaiting Experiment | © gettyImages / Andrew Brookes

Germany's Chemical Industry

Whether in the reinforcement of traditional industry products or the sustainable development of emerging technologies, Germany's chemical industry play a keystone role. Supported by world-renowned R&D institutes, knowledge laden graduates, and dependable supply-chains, Germany offer investors fertile ground for their product development and market integration within Europe’s largest economy. And all this at the center of a large market: the European Union.

Profits from Industrial Smokestacks
The global environmental focus is on reducing greenhouse gas emissions. But a forward-looking initiative from the Fraunhofer Institute and steel manufacturer thyssenkrupp is investigating how to use CO2 as a raw materials. Read the whole article in our Markets Germany Magazine here.

Chemical Industry Provides Grounds for Optimism
Germany’s chemical industry has seen of the worst of the Covid-19 crisis and is cautiously optimistic about the future according the German Chemical Industry Association. Read the whole article here.

Content of this page

The Industry in Numbers
Investments in the Chemical Industry in Germany
M&A deals involving German Chemical Companies
Market Opportunities
Investment Climate

The Industry in Numbers

As the European leader in chemical sales, exports, investment and R&D expenditure, Germany plays a decisive role in meeting global chemical demand. The chemical industry in Germany offers investors fertile ground for both production and product development within Europe's largest economy.

The German Chemical Industry in Numbers (2020)
Sales (Source: chart 59b)	EUR 160 billion Number 1 in Europe Number 3 worldwide (behind China and USA)
Exports (Chart 41b)	EU-28: 55%, European Non-EU: 15%, Asia: 16%, NAFTA: 8%, Latin America: 3%, Rest of world: 2%
R&D Expenditure (Chart 47)	EUR 4.9 billion
Employees (Chart 19b, 2020)	349,000 - thereof 150,000 in corporations with more than 1,000 employees
Companies (Chart 17b, 2018)	3,115: 82% (1-99 employees), 16% (100-999 employees), 2% (>1,000 employees)

^{Source: VCI, Chemiewirtschaft in Zahlen 2022 (update: February 07, 2022)}

Investments in the Chemical Industry in Germany

The European chemical industry’s declining share in the world market might seem alarming. However, sustained and significant investment activity in Germany signals a high level of global competitiveness, with basic chemicals surprisingly continuing to play a major role. Here you will find selected published investment activities in chemical industry production facilities in Germany.

Investments in the Chemical Industry in Germany [pdf]

Start-up	Company, Location	Chemical	New capacity or expansion (+) in tonnes/year	Investment
2022	BASF, Schwarheide	Cathode material for lithium-ion batteries	To equip 400,000 fully electric vehicles	€400m (estimated)
2022	UPM, Leuna	Biorefinery based on beech wood for the production of ethylene glycol (BioMEG), propylene glycol (BioPEG) and industrial sugar	220,000	€550m
2021	BASF, Ludwigshafen	Methanesulfonic acid (Lutropur®)	+65% in Ludwigshafen up to global capacity of 50,000	double-digit million € amount
2021	Ineos, Marl	Cumene	750,000	three-digit million € amount
2021	BASF, Ludwigshafen	1,6-Hexandiole (HDO)	+50% in Ludwigshafen up to global capacity of 70,000	NA
2021	Evonik, Marl	Polyamid 12 (VESTAMID®)	+50%	€400m
2020	Ciech, Staßfurt	Sodium hydrogen carbonate	110,000	€109m
2020	Evonik, Rheinfelden	Hydrophobic pyrogenic silica	+20%	double-digit million € amount
2020	BASF, Ludwigshafen	Vitamin A	+1,500 (+25%) up to global capacity of 7,500	NA
2020	Celanese, Höchst	Polyoxymethylene (POM)	+20,000	NA
2020	Nouryon, Höchst	Chlormethane	+30%	NA
2020	Grace, Worms	Colloidal silica (LUDOX®)	Capacity expansion	€80m
2020	BASF, Ludwigshafen	Alkylethanolamine	+20% in Ludwigshafen up to global capacity of 110,000	NA
2020	Clariant, Gendorf	Ethylene oxide	Capacity expansion	NA
2020	Covestro, Brunsbüttel	Methyl di-p-phenylene isocyanate (MDI)	+220,000 to 420,000	€120m
2020	DOW, Bitterfeld und Bomlitz	Methylcellulose	+19,000 at the two sites	NA
2020	Lanxess, Krefeld-Uerdingen	Benzyl alcohol	+30%	double-digit million € amount
2019	BASF, Ludwigshafen	Acetylene	90,000	three-digit million € amount
2019	CABB, Gersthofen und Hürth	Chloracetic acid	Capacity expansion	double-digit million € amount
2019	Alzchem, Trostberg	Nitriles	Capacity expansion	€7.2m
2019	Lanxess, Krefeld-Uerdingen	Compounds of polyamide (Durethan®) and polybutylene terephthalate (Pocan®)	Capacity expansion	double-digit million € amount
2019	Perstorp, Arnsberg	Pentaerythritol	+12,5%	NA
2019	Arlanxeo, Dormagen	Chloroprene rubber	+70,000	NA
2018	BASF, Ludwigshafen	Neopor® (expandable polystyrene (EPS) with graphite particles)	+40,000 at the two sites Ludwigshafen and Ulsan (Korea)	NA
2018	Lanxess, Krefeld-Uerdingen	Zinc oxide	Capacity expansion through a 3rd production line	€9m
2018	Momentive Performance Materials, Leverkusen	3-Octanoylthio-1-propyltriethoxysilane (NXT-Silan)	Doubling of capacity	€32m
2018	Domo und Total, Leuna	Benzene extraction and further processing		€60m
2018	Evonik, Witten	special copolyester, DYNAPOL®	several thousand	double-digit million amount
2018	Sasol, Brunsbüttel	Aluminium hydroxide	+15,000	NA
2018	Evonik, Marl	polyamide 12-powder (VESTOSINT®)	Capacity expansion by 50%	double-digit million amount
2018	Evonik, Nouryon	Chlor-alkali electrolysis	82,000 chlorine and 130,000 potassium hydroxide	NA
2017	Leuna-Harze, Leuna	Bisphenol A and Bisphenol F liquid epoxy resins	+30,000 to 70,000	€45m
2017	BASF, Schwarzheide	Ultramid (PA: polyamide) and Ultradur (PBT: polybutylene terephthalate)	+70,000 up to a global capacity of 700,000	NA
2017	CRI Catalyst, Leuna	Catalysts	+3,000	€30m
2017	Bayer CropScience, Hürth	Methane-phosphonic acid butyl ester	NA	€150m
2015	BASF, Ludwigshafen	Toluene di-isocyanate (TDI)	300,000	€1bn
2015	BASF, Ludwigshafen	World-scale plant for specialty amines, primarily dimethylaminopropylamine (DMAPA) and polyetheramines (PEA)	12,000	NA
2015	Evonik, Marl	But-1-ene	+ 75,000 up to global capacity of 310,000	€100m+
2015	BASF, Ludwigshafen	Complexing agent methylglycinediacetic acid (Trilon M)	Capacity expansion to a global capacity of 170,000	NA
2014	Bayer, Dormagen	Toluene di-isocyanate (TDI)	300,000	€150m
2014	BASF, Ludwigshafen	Vinylformamide (VFA)	Capacity expansion	€100m+
2014	Evonik, Marl	Liquid hydroxyl terminated polybutadiene (HTBP)	+ 10,000 to 22,000	€50m+
2014	Hi-Bis, Bitterfeld	1,1-Bis-(4-hydroxyphenyl)-3,3,5-trimethylcyclohexane, Bisphenol-TMC, Raw material for Apec from Bayer MaterialScience	+ 5,000 to 10,000	€50m
2014	Mitsubishi Plastics, Wiesbaden	Aluminia composite material (AlpolicTM)	1,5 Mio. sqm	€17m
2014	Air Liquide, Dormagen	Steamreformer to produce crack gas from natural gas	120,000 CO and 22,000 H₂	€100m
2013	AkzoNobel, Höchst	Chlor-alkali electrolysis	+ 165,000 to 250,000 chlorine and 275,000 sodium hydroxide	€140m
2013	Lanxess, Leverkusen	Cresols	+20%	€35m
2013	Covestro, Leverkusen	1,6-Hexamethylene diisocyanate (HDI) and isophorone diisocyanate (IPDI)	Capacity expansion	€35m
2013	BASF, Ludwigshafen	Neopor expandable polystyrene (EPS)	+60,000 to 150,000	NA
2013	Evonik, Marl	Diisononyl cyclohexane-1,2-dicarboxylate	40,000	double-digit million € amount
2013	Radici, Zeitz	Hexanedioic acid	+ 16,000 to 107,000	€18m
2013	LyondellBasell, Wesseling	Butadiene	+40% to 240,000	NA
2013	Lanxess, Dormagen	Ethylene vinyl acetate (EVA) copolymers	+30% to 15,000	NA
2013	DOMO Caproleuna, Leuna	Polyamide 6	50,000	€30m
2013	Kuraray, Höchst	Polyvinyl alcohol (PVA)	+24,000 to 94,000	€58m
2012	BASF, Ludwigshafen	Cristallinic salt of Hexanedioic acid and Hexane-1,6-diamine, AH-salt	24,000	NA
2012	BASF, Ludwigshafen	Polycaprolactame, PA6, Ultramid® B	+21,000	NA
2012	Styron, Schkopau	Styrene butadiene rubber, S-SBR, Sprintan™	+50,000 to 160,000	€91m
2012	Vinnolit, Burghausen	Paste PVC	+9,000 to 100,000	€9m
2012	Clariant, Hürth	Diethyl phosphinic acid aluminate salts, DEPAL, Exolit® OP	Doubling of capacity	CHF tens of millions
2012	BASF, Ludwigshafen	Methane sulfonic acid, Lutropur®	+10,000 to 30,000	NA
2012	Clariant, Straubing	Cellulosic ethanol via biocatalysis	1,000 tonnes ethanol from 4,500 tonnes straw wheat	€28m
2012	Sasol, Brunsbüttel	Triethylaluminium, TEA	6,000	NA
2012	LEUNA-Harze, Leuna	Chlor-Alkali-Elektrolyse und epichlorhydrin production	15,000 chlorine	€70m
2012	Wacker, Nünchritz	Polycristalline silicium	15,000	NA
2012	Lanxess, Krefeld-Uerdingen	Formaline (32%)	150,000	€18m
2012	Dyneon, Gendorf	New production line for fluoropolymers		60€m
2011	IAB, Bitterfeld	Lewabrane®		€30m
2011	OXEA, Oberhausen	2,2-Dimethyl-1,3-propanediol	Capacity expansion up to 45,000	NA
2011	BASF, Ludwigshafen	Ecoflex and Ecovio biopolymers	Ecoflex + 14,000 to 74,000	NA
2010	LyondellBasell, Münchmünster	High density polyethylene (HDPE)	320,000	NA
2010	BASF, Ludwigshafen	Low molecular weight polyisobutene (PIB)	+25,000 to 40,000	NA
2010	Covestro, Leverkusen	Pilot project for carbon nanotubes	200	€22m
2010	BASF, Ludwigshafen	Syngas	Expansion to around 1.4bn m³	€100m
2009	Evonik, Marl	2-Propylheptan-1-ol (2-HP)	60.000	€100m

PDF Download: Investments in the Chemical Industry in Germany

M&A deals involving German Chemical Companies

After several years of excellent business, chemical companies are seeking non-cyclical growth segments. M&A activities - primarily in the small-volume specialty chemicals sector - have slowly altered the characteristics of the production landscape in the highly industrialized regions. Below please find selected M&A transactions carried out by German chemical companies to sharpen their portfolios.

M&A deals involving German Chemical Companies [pdf]

Date	Target, Country	Buyer, Country	Value	Business area
Nov-20	Porocel, USA	Evonik, Germany	USD210m	Catalysts
Sep-20	BASF's Construction Chemicals Division, Germany	Lone Star, USA	€3.17bn	Construction Chemicals
Sep-20	DSM's coating resins business, The Netherlands	Covestro, Germany	€1.61bn	Coating resins
Aug-20	Lanxess's leather chemicals business, Germany	TFL Ledertechnik, Germany	€80-115m	Leather chemicals
Feb-20	PeroxyChem from One Equity Partners, USA	Evonik, Germany	USD640m	Speciality chemicals
Jan-20	Solvay's polyamide (PA 6.6) business, Belgium	BASF, Germany	€1.3bn	Plastics
Oct-19	Versum Materials, USA	Merck, Germany	€5.8bn	Materials for the electronic industry
Aug-19	BASF's global pigment business, Germany	DIC, Japan	€1.15bn	Pigments
Aug-19	Evonik's methacyrylate business, Germany	Advent International, USA	€3bn	Speciality chemicals
Dec-18	Arlanxeo (50% owned by Lanxess), Germany	Saudi Aramco (already holds 50%), Saudi Aramco	€1.4bn	Synthetic rubber
Aug-18	Bayer's agro business, Germany	BASF, Germany	€7.6bn	Agro business
Jun-18	Monsanto, USA	Bayer, Germany	USD63.5bn	Agrochemicals and seeds
Dec-16	Chemtura, USA	Lanxess, Germany	€2.4bn	Speciality chemicals
Dec-16	BASF's industrial coatings business, Germany	AkzoNobel, Belgium	€475m	Industrial coatings
Dec-16	Chemetall (Albemarle's global surface business), USA	BASF, Germany	USD3.2bn	Surface Treatment
Dec-16	J.M. Huber's silica business, USA	Evonik, Germany	USD630m	Silica business
Sep-16	Chemours's clean and desinfect business, USA	Lanxess, Germany	€210m	Desinfection chemicals
May-16	Air Product's specialty additives business, USA	Evonik, Germany	USD3.8bn	Additives
Jan-15	BK Guilini's water-, paper-, and alumine business (owned by ICL), Germany	Kurita, japan	€250m	Water-, paper-, and aluminium business
Nov-14	Styrolution (50% owned by BASF), Germany	Ineos (already holds 50%), UK	€1.1bn	Basic chemicals
Oct-14	Merck & Co's OTC drugs business, USA	Bayer, Germany	USD14.2bn	Pharma
Oct-14	Rockwood's TiO₂ and additives business (formerly Sachtleben), Germany	Huntsman, USA	USD1bn	Basic/Speciality chemicals
Sep-14	Bergquist, USA	Henkel, Germany	NA	Adhesives for the electronic industry
May-14	AZ Electronic Materials, Luxemburg	Merck, Germany	€1.9bn	Speciality chemicals
Feb-14	Silbond, USA	Evonik, Germany	double-digit million € amount	Speciality chemicals
Dec-13	Oxea (Oxo chemicals), Germany	Oman Oil Company, Oman	€1.8bn	Speciality chemicals
Jan-13	Pronova BioPharma (Omega-3 fatty acids), Norway	BASF, Germany	€660m	Life Science
Sep-12	Becker Underwood, USA	BASF, Germany	USD1.02bn	Crop protection
May-11	DSM's elastomeres (EPDM) business, The Netherlands	Lanxess, Germany	€310m	Speciality chemicals
Apr-11	Süd-Chemie, Germany	Clariant, Switzerland	CHF2.5bn	Speciality chemicals
Dec-10	Cognis, Germany	BASF, Germany	€3.1bn	Speciality chemicals, nutritional ingridients
Apr-09	Ciba, Switzerland	BASF, Germany	CHF6.1bn	Speciality chemicals
Mar-08	National Starch (former ICI), USA	Henkel, Germany	GBP3.7bn	Adhesives
Jul-06	Degussa's Construction Chemicals Division, Germany	BASF, Germany	€2.7bn	Construction Chemicals
Jun-06	Engelhard, USA	BASF, Germany	USD5.2bn	Catalysts
Jun-06	Schering, Germany	Bayer, Germany	€17bn	Pharma
Jul-05	Sigma-Aldrich, USA	Merck, Germany	USD17bn	Life Science

PDF Download: M&A deals involving German Chemical Companies

Market Opportunities

Stable and Sustained Growth

During the period 1960 to 2010, chemical industry revenue in Germany increased from EUR 12 to EUR 171 billion (according to Feri AG and the German Chemical Industry Association – VCI); resulting in an average nominal growth rate of 5.4% per year (real growth rate: 3.1%). Over the same period, the number of employees decreased from 458,000 to 415,000; increasing productivity sixteen-fold indicated by revenue per employee levels of EUR 412,000 in 2010.

Global Production Leader

When it comes to chemical production locations, Germany is a global heavyweight, ranking first in Europe. With 2018 turnover of EUR 157 billion (VCI), the German chemical industry played a leading role in European performance, generating almost 30 percent of total EU-28 sales of EUR 577 billion. Germany has occupied the world number three spot in global chemical revenue ranking for a number of years, being surpassed only by China (EUR 1,488 billion) and the US (EUR 505 billion) in 2018.

New Markets

“New” raw materials and energy and mobility: these 21^st century megatrends offer enormous opportunities for Europe’s technology-driven chemical industry. Germany in particular will play a leading role in shaping these trends, thanks to the strong interdisciplinary character of German industry. This capability is vital, as cross-sector technologies and the development of new materials are an absolute necessity.

From Commodities to Specialties

The development away from mass commodity or bulk chemistry to fine & specialty chemical production can be best observed using a “push-and-pull” model. As a result of high cost pressure, the low-margin equipped mass commodity chemistry is increasingly pushed into the raw materials processing countries. At the same time, Europe has access to the necessary technologies and know-how required in the constantly growing specialty chemicals market. Europe, with Germany at the forefront, is proving very attractive to the specialty chemical industry.

Please contact us for more information on the German chemical industry or for an individual project assessment.

Investment Climate

Plug & Play Production Concept: Chemical Parks

Today, the “plug & play” concept is widely understood and appreciated. Sites (i.e. chemical parks) commonly offer a comprehensive range of services which are customized to the needs of prospective international or domestic investors. The major benefits to both the site operator or owner and the investor are shared site overheads for increased cost effectiveness. Chemical parks offer a wide range of flexible business models which are attractive for potential investors. Subject to their individual requirements, investors can simply buy or lease land from the site owner in order to establish their own production unit. At the other end of the scale, the business model might consist of a site operator investing in and operating new plant for the investor on a custom or toll-manufacturing basis.

Chemical Infrastructure: Pipeline Network

The major chemical carbon source, crude oil, is distributed by an advanced net of pipelines. Twelve refineries (with a total capacity of about 100 million tons per year – equivalent to 3% of global capacity) and eight steam crackers supply Germany’s chemical industry with all of the necessary building blocks. Of the 145 million tons of chemicals transported annually in Germany, 36% are transported by pipeline. Major chemical sites are interconnected through pipelines that transport raw materials such as ethylene within the country and via Belgium and the Netherlands to neighboring chemical production centers and Europe’s northwestern seaports. There are also hydrogen, carbon monoxide and oxygen pipelines between chemical parks with a specialized production focus.

Energy Security: Low Power Outages in the World

The security of Germany’s electricity supply is very high by international standards. In marked contrast to the US and other countries in Europe where major blackouts are recurrent, power outages are definitely the exception in Germany. The average amount of time lost to blackouts in the US is nearly four hours per year and in Spain two hours per year. Italy and the UK suffer from outages of around 80 minutes per year. However, these all exceed the German average of just 40 minutes per year.

Research & Development: Cutting-Edge Infrastructure

About 22,000 employees work in the German chemical industrial R&D units with annual industry R&D expenditure amounting EUR 4.6 billion. Industry R&D efforts are complemented by institutional R&D. Publicly funded research units of the Max-Planck Society, the Frauenhofer Gesellschaft, the Helmholtz Association, and the Leibniz Association undertake R&D in close cooperation with the industry; often taking place within Germany's unique chemical cluster network infrastructure. The unique combination of industrial and institutional R&D represents an immensely valuable source of capacity for international companies. Thanks to institutional research’s privileging of practical expertise, project-oriented cooperation between industry and institutions is commonplace – ensuring that Germany's chemical industry remains at the international cutting edge.

Workforce and Training: Unique Training System

Germany's chemical industry has a highly trained workforce of more than 360,000 employees. As in other German industry sectors, a unique training system provides the industry with skilled workers according to the company's needs via the vocational or “dual” training system. This enables young employees to specialize on chemical laboratory work, product development or production from the age of 16 onward. This system is accompanied by bachelor and master programs in chemistry offered nationwide (about 50 universities offer classical master degrees in chemistry supplemented by chemical engineering, biochemistry etc.). As well as this, 14 universities of applied sciences offer programs in chemistry. The combination of vocational and advanced training is pivotal to the success of the German chemical industry.

Germany's Chemical Industry

The Industry in Numbers

Investments in the Chemical Industry in Germany

Start-up

Company, Location

Chemical

New capacity or expansion (+) in tonnes/year

Investment

M&A deals involving German Chemical Companies

Date

Target, Country

Buyer, Country

Value

Business area