Interest in major projects

Germany is recording a decline in foreign investors during the pandemic, reports the federal economic development agency. The trend is towards large projects, such as the battery production of Stellantis or the Tesla plant in Brandenburg.

Pulled up in no time at all: the Tesla Gigafactory east of Berlin.

WA few new projects, but record volumes and many jobs: Germany is very popular with foreign investors despite the corona pandemic. A total of 1684 companies settled in this country in the past year, according to data from the federally owned business development agency Germany Trade & Invest (GTAI). That was 9 percent less than in 2019 and the lowest number since 2014. “But at the same time there are a lot of large investment projects coming to Germany,” said GTAI managing director Robert Hermann on Thursday to the Reuters news agency.

As a result, the number of announced new jobs remained high at 35,000: It is the second highest value ever. The announced investment amount even doubled compared to 2019 to a record value of 10.4 billion euros.

The drivers are renewable energies and the automotive sector

The major investors include, for example, the Chinese Honeycomb Energy Technology, which is investing two billion euros in battery production in Saarland and wants to create 2,000 jobs in the process. The car manufacturer Stellantis, which emerged from the merger of the French Opel parent PSA Peugeot and the Fiat Chrysler Group, in turn wants to invest billions in battery production in Kaiserslautern, which should also create around 2,000 new jobs. The Swiss company Meyer Burger is planning more than 700 million euros in Bitterfeld for the production of solar cells, which should create up to 3000 new jobs.

“Germany has successfully mastered previous crises such as the financial crisis, which is why many investors rely on the location despite Corona,” said Hermann. “We also expect that many projects will be rescheduled after the end of the pandemic. After all, postponing is not canceled. ”Almost every fifth company uses Germany as a production and research location. This also proves the attractiveness of the location.

The United States remained the most important foreign investor: 254 projects came from there alone. Switzerland (219) continues in second place, followed by China (170) and Great Britain (103). Since 2016, the year of the Brexit referendum, British resettlements in Germany had risen and now declined for the first time.