DiversityProgress

Future

2016/17

fifteenth revised edition 2016

Profile of an industryContents

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Diversity is our strength

The chemical industry in Baden-Württemberg

Baden-Württemberg – a world of chemistry

Acting responsibly for the future

The pharmaceutical industry in Baden-Württemberg

The Paints and Coatings Industry

Bio- and gene technology – the search for new products

Well-balanced wage and social policies

Portrait of Baden-Württemberg’s Chemical Industry Associations

The strong "Mittelstand"

Nanotechnology – small but very important

Energy – what the chemical industry needs

Training facilities in the chemical industry

The need for stable background conditions

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Baden-Wuerttemberg: a chemistry-friendly state This booklet gives you the details. The chemicalindustry here produces a range of pharmaceuti-cals, cosmetics, plastics, paints and coatings thatis as diverse as the state itself and the peopleliving in it.

DiversityA mix of well-established small and medium-sizedcompanies, subsidiaries of large corporations andstart-up ventures nurtures a spirit of innovation.Managers, researchers, developers, engineers,technicians, production workers and office staffwork in their factories, laboratories and offices withone and the same aim in mind – to become steadilymore productive, more customer-oriented – in aword, better.

ProgressThe chemical industry is essential for the future ofBaden-Württemberg. It is one of the state’s mostproductive sources of innovation for other indus-tries. Many innovative product developments originate in chemical laboratories. The chemical-pharmaceutical industry investsmore than five per cent of its turnover in researchand development.

Diversity · Progress · FuThe chemical industry in Baden-W

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FutureBaden-Württemberg’s excellenttraffic infrastructure and re-search-oriented environmentmake it an ideal location for thechemical industry, in fact thefourth largest in Germany.Baden-Württemberg’s chemicalindustry thinks globally, too.More than half its sales aremade in export markets.

Without the chemical industry itwould be impossible to copesuccessfully with some of thekey challenges of our time, likehusbanding of natural resour-ces and climate protection.More than one hundred thou-sand people are working inBaden-Württemberg’s chemicalindustry to ensure that the futurewill be worth living.

ture ürttemberg

Structures and FiguresDiversity is our strength

DiversityPercentage employed by sub-sectors

35 % Pharmaceutical

12 % Paints, coatings, building preservation

9 % Personal hygiene, detergents

7 % Latex, rubber

7 % Glues, adhesives, mineral oil

6 % Plastics

6 % Basic chemicals

4 % Marketing and management companies

14 % Other, incl.- Technical gases- Chemical fibres- Pesticides

Sales and numbers employed

442 companies107,000 employeesAnnual sales approx. 37.3 billion euro

Source: Data supplied by member companies of chemical industry associations in Baden-Württemberg (Status: March 2016)

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Principal locations of chemical industry

Mannheim/Karlsruhe region 131 companies34,504 employees

Freiburg/Upper Rhine region66 companies15,460 employees

Greater Stuttgart area109 companies · 23,075 employees

Ulm region29 companies · 14,150 employees

Typical medium-sized structuresAlmost 90 per cent of companies have fewer than 500 employees.

58 % up to 100 employees

22 % 101-300 employees

8 % 301-500 employees

7 % 501-1,000 employees

5 % over 1,000 employees

Baden-Württemberg’s chemical industry is traditio-nally a supplier of precursor products and compo-nents. These include, for example, basic essentialsfor the web: innovative products for electronic chipmanufacture, plastic casings for computers, mobiletelephones and for the infrastructure are developedand produced here.

Chemistry has an ubiquitous presence in our every-day lives:

Chemistry makes us mobileScratch-resistant paints, fuel-saving tyres, ultra-robust, light structural materials, high-performan-ce engine oils, flexible and durable adhesives, newfuel additives and improved insulating materials –Baden-Württemberg’s chemical industry makes animportant contribution to the car of the future.

Chemistry preservesEnvironment-friendly detergents producing betterwashing results with smaller quantities – this ismade possible by special chemical additives pro-duced by Baden-Württemberg companies.Chemical treatments make clothing waterproof,dirt-resistant and easier to iron. Colours are moreattractive, too.

Products Made in Baden A world of chemistry

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Chemistry helpstCosmetics, products for care ofskin and hair are present in thehomes of just about every con-sumer. Baden-Württemberg’schemical industry helps enhan-ce your quality of life by develo-ping improved sun screens,medicines with less side-effectsand new, alternative therapeuticagents.

Chemistry protects ... the climate. By improving its pro-duction processes, the chemicalindustry has almost halved itsgreenhouse gas emissions since1990. Production in the sameperiod rose by 62 per cent – butabsolute energy consumptionwent down by over 19 per cent.The industry and its products arealso indispensable for savingenergy.

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Nine out of ten companies in the chemical, pharma-ceutical and paint industries in Baden-Württem-berg have less than 500 employees. They form the“Mittelstand” – Germany’s small and medium-sizedcompanies that play a vital role in our state and itseconomy.

Flexible and efficientBaden-Württemberg’s small and medium-sizedbusinesses employ around 40 per cent of all em-ployees in this sector. They research, develop, pro-duce and sell products that are often at the cuttingedge of their particular niche segment. Becausesmall and medium-sized businesses have advan-tages in terms of their structure: with their flathierarchies they can react flexibly to changingcircumstances.

Innovative backbone of t The strong “Mittelstand”

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he industry

Location factorMany of the small and medium-sized businesses have a longtradition. They have firm roots intheir region and long-standingemployees. It is not unusual foremployees to have worked forthe same company for manyyears, and in many cases thecompanies have an above-ave-rage number of trainees. Thesefactors contribute to securingjobs in Germany. To enable thesesmall and medium-sized enter-prises to continue being theinnovative backbone of Baden-Württemberg’s economy, they re-quire support and reliable frame-work conditions, which meansflexible solutions are needed. Inparticular this includes interna-tionally competitive energy costsand security of supply.

Baden-Württemberg’s manufacturers of pharma-ceuticals and diagnostic agents are a powerfulstimulus for innovation. Baden-Württemberg hasone of the highest concentrations of pharmaceuti-cal manufacturers in Germany. With a 35-per-centshare, the pharmaceutical industry is the largestsub-sector in the state.

Diversity and specialisationBaden-Württemberg is the chosen location of seve-ral global players and also a large number of smaller,privately-owned companies. Research, develop-ment and manufacture of health care productscan be found at many different locations. Thisnaturally includes companies using bio- and genetechnology.

Leading global positionThe leading European manufacturers of homoeo-pathic, phytotherapeutic and anthroposophic pre-parations are located in Baden-Württemberg, as alsoare companies supplying products for regenerativemedicine like skin grafts. The state is also thehome of one of Europe’s largest biotechnologicalproduction plants. And not to forget: importantmanufacturers in the area of self-medication pro-duce here too.

Germany’s PharmacyThe pharmaceutical industry in B

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Research defends strong positionBaden-Württemberg’s pharma-ceutical manufacturers conductresearch in all fields, especiallyfor products to combat majorscourges like cardiovasculardisease, cancer, Alzheimer'sand central nervous system dis-orders. They are also strong inthe new area of personalisedmedicine. To achieve success,they need an environment thatis open to competition. Their de-velopment work should not behampered by blanket cost-cut-ting policies in the health caresector. The sole valid objectivesof research are patient benefitand health care quality.

aden-Württemberg

Paints and coatings manufacture accounts for a12 per cent share of Baden-Württemberg’s chemi-cal industry and gives the state a leading positionin this sector at national level. One of the reasonsfor this is the proximity of the automobile industry,but products for building protection and printinginks also make a significant contribution.

Protection and maintenance The importance of paints and coatings for a coun-try’s economy extends far beyond the mere materialvalue of these products. Surface protection ofbuilding and manufacturing materials ensuresmaintenance of assets valued at many billions ofeuros, which would otherwise succumb to corrosionand rot and need replacing much more frequently.The paint industry’s contribution to alleviation of theworld’s climate problems with its products forprotection of buildings is so large that it is impos-sible to express it in figures.

Decoration, Protection a The paints and coatings industry

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Constant progressOne notable development inrecent years is the steadilyincreasing market share of water-based and powder coatings andcoatings with a very high solidscontent. This is clear proof thattechnological progress – forexample, development of pro-ducts containing nanoparticles– also yields benefits in the fieldof environmental protection.

Strong position of family-ownedcompanies

The paints and coatings industryin Baden-Württemberg has astructure in which small andmedium-sized companies predo-minate. Many of these have beenfamily-owned for generations.Exporting their innovations to allparts of the globe, they help toenhance Baden-Württemberg’simage as a location that is opento the world.

nd Maintenance

Baden-Württemberg is one of the most preferredlocations in Germany for companies specialisingin bio- and gene technology. They cover a broadbandwidth ranging from start-up ventures tointernationally active pharmaceutical companies. A large number of biotech companies have beenfounded here.

The state’s five bio-regions are in the greaterStuttgart region, the Rhine-Neckar Triangle, inUlm and Freiburg, and on Lake Constance. Theyhave created an innovative environment for theindustrial use of biotechnological processes.

Wide range of applicationsBio- and gene engineering enables breakthroughsin the field of medicines, innovative and safe dia-gnostic agents, hardier and higher-yielding varietiesof plants and environmentally compatible processesand products. Modern drug development andmanufacture, especially in the fight against cancer,is heavily reliant on these new sciences

Biotechnology and environmental protectionBiotechnological manufacturing processes have alarge number of advantages. They require fewerraw materials, less energy, less water, and gene-rate less waste. Any residues are largely reused innew processes, effectively closing the manufactu-ring cycle.

Focused on the FutureBio- and gene technology

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Public debate on biotechnologyThe bioengineering industrywants to encourage open deba-te on the responsible use of itstechnologies. Because this isthe only way to create the sortof social and political climate inwhich their safe and beneficialuse can be guaranteed.

The prime criteria for the use ofbio- and gene engineering – aswith anything else in the field ofchemistry – are safety and pro-tection of the environment ingeneral and mankind in particu-lar. The companies involved areconstantly seeking to improvethe safety and environmentalcompatibility of their processes,independently of any officiallyimposed legal standards. Thechemical industry takes its envi-ronmental obligations seriouslyunder the umbrella of theChemie³ initiative

Nanotechnology is a pioneering, modern scienceinfluencing a broad cross-section of industries. Ithas made great strides forward in recent years.

Small and newThe chemical industry is already using nanoparti-cles in the manufacture of a wide range of products.Their optical, electrical and magnetic properties,plus their hardness, viscosity and melting proper-ties give nanoparticles a number of advantagesover conventional materials. They can, for example,make surfaces scratch-resistant, non-reflecting,waterproof and grease- and dust-resistant.

Small and directNanoparticles are also valuable in medical rese-arch. Charged with clinically active substances,they can be transported exactly to the parts of thebody where they are needed.

Small but very important Nanotechnology

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Big in Baden-Württemberg Baden-Württemberg is one of theleading German states in the fieldof nanotechnology. Of the morethan 280 nanotechnology loca-tions in Baden-Württemberg,considerably more than half workin the field of industry, and ofthese, more than two-thirds aremedium-sized enterprises. Further-more, Baden-Württem-berg has numerous scientificinstitutions conducting researchon nanomaterials, mostly in closecollaboration with the chemicalindustry.

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As a core industry in Germany and Baden-Württem-berg, the chemical industry uses energy and resour-ces efficiently. To achieve this, new technologiesare used – and products are manufactured that areindispensable for saving energy.

Climate protection through products and processesMany products of the chemical industry protectthe climate and save more energy than is neededfor their production. Practical examples includebuilding insulation, new innovative sources of lightand sustainable mobility. With the likes of light-weight construction materials and fuel-efficienttyres, safe alternatives are coming into use, step bystep. Moreover, renewable sources of energy –from solar to wind power – cannot be reasonablyused without chemicals either.

Raw materialsIt goes without saying that the chemical industryuses raw materials efficiently. For us, efficiencymeans testing renewable raw materials for theirusability and integrating them into the industry’sprocesses. But this has to be technically possible,economically and environmentally viable, and becarried out in a socially responsible manner. Ourresearchers and developers are working toachieve this.

Reliable, affordable, effiEnergy – what the chemical indu

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cient stry needs

Energy policyThe chemical industry is fully be-hind the energy revolution. Butwe need to structure it properly,and for this reason we have clearpolicy demands: the processneeds to be safe, affordable andenvironmentally friendly. Cur-rently there is a clear imbalance.Renewable energies are expan-ding substantially – which isgood for the climate. Bad for thechemical industry, on the otherhand, is that energy supplieslook set to be less reliable in themedium term, while at the sametime energy costs are continu-ing to rise in comparison toother parts of the world.

Under the Chemie³ (Chemistry³) umbrella, the VCI(German chemical industry association), the BAVC(German chemical industry employers’ association)and the IG BCE (German trade union for the mining,chemical and energy industries) advocate sustain-able development. In dialogue with stakeholders,the alliance partners are promoting sustainabilitywithin their industry.

The Chemie³ initiativeThese three partners have made it their goal tostrengthen sustainability as a mission statementwithin the industry. The fundamental principles ofour actions are to protect mankind and the environ-ment as well as promote good, fair working condi-tions and economic efficiency. Examples are theResponsible Care Programme, the WittenbergProcess and the Chemistry Social Partnership.

Three dimensionsInnovations in the chemical industry are makingan important contribution towards meeting globalchallenges. At the same time, we are well awareof the numerous tasks that still lie ahead of us. Ourindustry not only sees sustainable developmentas an obligation towards future generations, butalso as an opportunity to develop a strategy thatwill secure the future of the chemical industry. Itcan combine economic success with social justiceand ecological compatibility.

Sustainability: We stand Acting responsibly for the future

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for Chemie3

Joint efforts By joining forces, the partnersare working to achieve our aims.To date, the Chemie³ sustainabi-lity initiative is unique. All threepartners have a common com-mitment to success – and arewell aware of their responsibility,both for the chemical industryand for society.

CompetitionAt state level, the companiesregularly take part in a competi-tion to win the Responsible CareAward. The competition focu-ses on issues such as resourceefficiency, occupational, plantand transport safety, as well asenvironmental protection. In2012 and 2013, the national win-ners were companies fromBaden-Württemberg.

Ever since the 1980s the employers and the tradeunion in the chemical industry have been follo-wing agreed policies aimed at perpetuating theindustry’s presence and safeguarding employmentopportunities for future generations. This has beenmade possible by a pragmatic attitude to socialpartnership which has become a hallmark of thechemical industry. It finds its expression in wide-ranging collective agreements, supplementaryagreements on social benefits and the foundationof institutions jointly administered by the employ-ers and the union.

Flexible labour agreements Tarifpolitik· Corridor for working hours· Options for long-term accounts and qualification· Remuneration corridor – demographic corridor · Reduced rates for job starters· Performance-related annual bonus

Pioneering agreements· Collective agreement on life work and demographic issues

· Collective agreement on training and entry-level jobs for the future

· Collective agreement on one-off payments and pension schemes

· Principles ”For a family-conscious personnelpolicy offering equal opportunities”

Job ProtectionWell-balanced wage and social p

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· A responsible approach tothe social market economy(the Wittenberg case)

Joint institutions· Chemie-StiftungSozialpartner-Akademie(CSSA) – a joint employer-union foundation

· So.Win – the Social PartnerLab for Innovation andSustainability (formerly GIBUCI)

· Unterstützungsverein derChemischen Industrie (UCI) – a fund offering assistanceto young people startingcareers in the industry

Safeguarding jobsThe objective of any policyagreed between employers andunions must be achievement ofa fair balance between employerand employee interests. It mustnot adversely affect the compa-nies’ financial performance. It isthe joint responsibility of bothsides to safeguard jobs and joblocation.

olicies

Attractive, interesting careers, modern, safe work-places – that is what training in the Baden-Württemberg chemical industry can offer. Around1,000 young people opt in favour of a career in ourindustry every year. They are interested in modernscience and technology. They are happy to contri-bute their dedication and a strong team spirit. Theindustry stands behind the dual vocational trainingsystem on all levels. Currently the companies inBaden-Württemberg are training around 3,000 trai-nees. The chemical industry is thereby fulfilling itssocial responsibility.

Modern-day careers The qualifications for careers in the chemicalindustry are regularly reviewed to make allowancefor developments in industrial practices. Dual(theoretical/practical) training courses are availablefor some fifty different scientific, technical andcommercial qualifications that give trainees andapprentices excellent preparation for their futurecareers.

Study plus practice The training courses prepare the applicants for acareer in the chemical industry with a combinationof theoretical study at the Baden-WürttembergDuale Hochschule and practical, on-the-job trainingin a chemical company.

Careers with a Future Training facilities in the chemical

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Career start for academicsWith the platform ”Your Che-mistry Career“, the ChemicalAssociations (Chemie-VerbändeBaden-Württemberg) offer infor-mation for job-seeking gradua-tes: what companies are lookingfor and what jobs and careeropportunities they are offering.(www.yourchemistrycareer.com).

Ongoing training The training facilities in the che-mical industry offer much morethan just basic training courses.Ongoing specialist training andcourses aimed at developing per-sonal skills are part of the stan-dard range available from thetraining establishments. Furthertraining courses for qualificationas engineer, technician or mastercraftsman offer candidates addi-tional opportunities for careeradvancement.

Additional information aboutcareers in the chemical industrycan be found at “www.elementare-vielfalt.de“.

Stable, industry-friendly political conditions areessential for the future development of the chemicalindustry in Baden-Württemberg.

Increasing foreign competition Companies located in Baden-Württemberg arefinding themselves exposed to increasingly keencompetition at global level. Roughly two thirds ofthe workforce in the Baden-Württemberg chemicalindustry are employed in companies belonging toforeign corporations which make benchmark andcost comparisons of their international locations.

EU influencesThe EU is nowadays playing a leading role in sha-ping the legal background for industrial activities.The decisions taken by the responsible EU commit-tees should make due allowance for the interestsof the industrial countries and regions making signi-ficant contributions to Europe’s prosperity. Thereis a need for more practically oriented regulationsand less bureaucracy.

Responsibility in Baden-WürttembergPolitical and fiscal decisions taken in Baden-Württemberg should reflect an understanding ofthe needs of local industry and a friendly disposi-tion towards small and medium-sized companies.Extra charges due to Baden-Württemberg’s spe-cial levies, for example resulting from the regional

Working for the futureThe need for stable background c

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Renewable Energies Act or theso-called ”Water Penny” tax,should be avoided. The chemi-cal industry needs qualifiedyoung people and this can onlybe achieved by placing moreemphasis on natural sciences inteaching programmes at schoollevel. Education is a staple foodfor Baden-Württemberg. It mustbe cultivated.

Competitive health care sectorThe German health care marketis highly regulated. But what itreally needs is more competition.The pharmaceutical industry,which is so important for Baden-Württemberg, will only be ableto offer high-grade, well-paidjobs, conduct research that willbenefit the sick and continuecostly development of innovativeproducts, if it has a properly func-tioning, competitive environmentin which to operate.

onditions

Baden-Württemberg’s chemical industry associa-tions represent the chemical companies doingbusiness there. They publicise their positions onfinancial, environmental, health care and socialmatters to the politicians, the media and the generalpublic. They are the Baden-Württemberg branchof the Association of the Chemical Industry (VCI)and the Baden-Württemberg Chemical Employers’Association (agvChemie).

Specialised sub-groups belonging tothe foregoing associations include theregional branches of the Association ofthe German Pharmaceutical Industryand the Association of the GermanCoatings and Printing Inks Industry.

AdressesMarkgrafenstraße 976530 Baden-Badenwww.chemie.comfacebook.com/chemiebwtwitter.com/chemie_bwyoutube.com/chemiebw

Services and RepresentatPortrait of Baden-Württemberg’s

Thomas MayerPrincipal General Manager

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Core responsibilities· We offer advice and construc-tive criticism on the draftingof legislation relating to ourmembers’ business activities.

· We explain the political expec-tations of our member compa-nies to politicians, bureaucratsand the media.

· We give our member compa-nies advice on questions rela-ting to economic policies andthe environment.

· We negotiate collective agree-ments with the trade union.

· We give our member compa-nies advice on questions rela-ting to worker participation inmanagement, the Works Coun-cil Constitution Act and labourlaw in general.

· We keep politicians, the mediaand the business world infor-med on matters of special con-cern to our member companies.

· We cultivate a dialogue bet-ween the chemical industryand the schools.

Peter DettelmannChairman of VCI RegionalManagement Board

Markus ScheibChairman of Management Board, agvChemie

tion chemical industry associations

June 2016

mpunktfrei | manuela frei

Chemie-VerbändeBaden-Württemberg

Markgrafenstraße 976530 Baden-Baden

Tel. 07221 2113-0Fax 07221 26675

www.chemie.cominfo@chemie.com

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