Invest in Germany Executive Dinner - How Far East?

Well over one hundred business leaders gathered at the Houstonian Hotel Wednesday, April 23, 2008 in the evening for a dinner sponsored by Invest in Germany and organized by the German American Chamber of Commerce of the Southern United States, Inc. featuring experts from Germany and US industry leaders. Amongst the participants was the German Vice Consul General Kai-Uwe Spicher, Kristian Wolf, CEO & President of the German American Chamber of Commerce of the Southern US, Mortada Mohamed from the Office of the Governor, a delegation from the German Federal Ministry of Transport, Building and Urban Affairs, Jim Edmonds, President of the Port of Houston as well as a delegation from Invest in Germany.   

Ken Bremer, Director of Invest in Germany North America based in Chicago set the stage for the benefits of East meeting West. Invest in Germany is the inward investment promotion agency of the Federal Republic of Germany. It provides investors with comprehensive support from site selection to the implementation of investment decisions. He reminded us of the fall of the Berlin Wall, of German reunification and of the eastward shift that it produced. 

Ken Bremer introduced State Secretary Dr. Engelbert Lütke Daldrup, Federal Ministry of Transport, Building and Urban Affairs who addressed the question, “How far East?” and the importance of American investors in stimulating eastern Germany’s economy. American investments account for nearly 50% of the total foreign direct investment (FDI) in eastern Germany since 1997. Daldrup’s ministry carries the responsibility of supervising economic expansion and development in eastern Germany.

In the ever changing global economic landscape, there is an eastward shift and Germany is well positioned to take advantage of this shift both in physical location and economically.  He explained that Germany is experiencing an economic upward swing.  In 2007 German industrial output increased by 10.3%. German exports increased by 14.9 %, making the German economy the largest economy in Europe.  Germany is now a good starting point to make inroads to access markets in Central and Eastern Europe offering newly rebuilt infrastructure, lower wage expectations, educated, loyal and flexible workforce and regional cost advantages that include subsidies on investment costs.

Since reunification tremendous work has been done to renovate, renew and bring East German infrastructure to 21st century standards and beyond. Given a new name, the New Federal States of Germany now offer business leaders tremendous opportunity for growth in this all new arena.  The whole new infrastructure (80 % renewed) provides a strong basis for growth.  New universities and governmental incentives provide opportunity for research and development.  Available in this region, encouraging growth are government subsidies of up to 35% of investment cost for larger industries and 50 % for smaller industries. East Germany is also leading in renewable energies with 50,000 new houses built using photovoltaic systems and the largest wind energy system in Europe adding to the benefits in the New Federal States of Germany.

Keynote speaker, Dr. Wolfgang Lindheim, Executive Vice President and CFO, Porsche Cars North America described an unprecedented four years of record-breaking growth with 2007 calendar year sales of 36,680.  In 1998 Porsche purchased property in Leipzig in the New Federal States of Germany and the new plant was up and running by 2002, a testament to opportunity and growth available in the New Federal States of Germany.  Since December 2002, Porsche has produced its Cayenne model at its factory in Leipzig, a major city in eastern Germany. The company has now decided to expand the plant to produce its new Panamera model there which is scheduled to be available in 2009.

The event offered investors the possibility to learn about business opportunities or expansions in eastern Germany. “I found it to be most productive as well as interesting, and made some great connections”, said one of the participants.

The guests took the chance to exchange their ideas among each other as well as with representatives from Invest in Germany and the delegation from the German Federal Ministry of Transport, Building and Urban Affairs.

For more information about this event please contact us at events(at)gacctexas.com.

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