Preferential Policies Investing in Leipzig - Invest Region Leipzig

 
CONTINUE READING
Preferential Policies Investing in Leipzig - Invest Region Leipzig
Preferential Policies
Investing in Leipzig
General Conditions, Grants & Support for Chinese Companies

September 2019 Edition

In cooperation with China International Chamber of Commerce for the Private Sector

And EU-China Municipal Development Commission
Preferential Policies Investing in Leipzig - Invest Region Leipzig
CONTENTS

CONTENTS                                              2

INTRODUCTION                                          3

THE LEIPZIG REGION                                    3

Location                                               4

Leipzig as part of the European Union                  4

VISAS AND WORK PERMITS                                5

Work visa                                              5

A special programme for work visas in Leipzig          5

SETTING UP THE COMPANY                                6

Research and business partners                         6

Company foundation                                     6

MARKET LAUNCH                                         7

Registration procedures, patents and certifications    7

INDUSTRIAL REAL ESTATE                                7

Commercial spaces                                      7

Office properties                                      7

GRANTS                                                7

GRW - Investment grant                                 8

KETs pilot lines                                       9

EMPLOYEES                                             10

LEIPZIG ECONOMY - SELECTED INDUSTRIES                 11

Automotive                                            11

Life sciences                                         12

Energy and environmental technology                   14

Logistics                                             15

CONTACT                                               17
                                                       2
Preferential Policies Investing in Leipzig - Invest Region Leipzig
INTRODUCTION

This document will give you an overview of the possibilities, general conditions and support services for expanding your
company in the Leipzig region.

Invest Region Leipzig GmbH, as a branch of the City of Leipzig, the Leipzig Chamber of Industry and Commerce and the
administrative districts of Northern Saxony and Leipzig is the official settlement and acquisition agency for the economic
region of Leipzig.

The company is the central point of contact for all questions relating to its investment decisions and preparations for
companies settling in the Leipzig region. Invest Region Leipzig's services are free of charge for investors. Services include
comprehensive information about coming to Germany (visas and work permits) and assistance in setting up your
business. In addition to researching business partners and promoting investment, these services also include
comprehensive support for company start-ups and market entry. Furthermore, you can use Invest Region Leipzig's
expertise and network for real estate and property research as well as the search for skilled labour.

Invest Region Leipzig works closely with the Chinese Chamber of Commerce for the Private Sector (CICCPS)1, which is
authorised by the Chinese central government. CICCPS is a member company representing around 5 million Chinese
companies of all sizes. CICCPS' mission is to promote and support international cooperation between Chinese and
foreign business partners. In November 2019 its President, Mr WANG Yanguo, opened the first CICCPS European Liaison
Office in Leipzig. The task of the Liaison Office is to facilitate and support EU market access for Chinese companies
together with their local partner, Invest Region Leipzig.

Furthermore, Invest Region Leipzig cooperates with EU-China Municipal Development Commission (ECMDC) 2, a
European NGO registered and established in Brussels, the Capital of the Kingdom of Belgium and the seat of the
European Commission. Since its establishment, ECMDC is devoted to foster cooperation between EU headquarters, EU
member states and the Chinese government at different levels in the fields of economy, culture, science and technology.
ECMDC and its European partners organize different kinds of down-to-earth cooperation projects in the
aforementioned fields to make full use of Chinese and European capabilities for mutual benefit.

THE LEIPZIG REGION

Leipzig is the eighth largest city in Germany with a population of around 600,000. Some 1.7 million people live within
40 kilometres of the internationally recognised trade fair and cultural city.

After Munich, Leipzig is the second strongest location for business in Germany3. In 2019 Leipzig was named the most
dynamic region in Germany4.

The location is characterised by competitive industries, state-of-the-art research and educational facilities and a
progressive infrastructure.

1
  http://en.ciccps.org/ (englisch) oder http://ciccps.org/ (chinese)
2
  http://www.ecmdc.eu/index.shtml (englisch) oder http://www.ecmdc.eu/ (chinese)
3
  City ranking according to HWWI & Berenberg (2018) www.hwwi.org
4
  Source: Prognos AG Zukunftsatlas 2019 www.prognos.com
                                                                                                                           3
Location

The city of Leipzig is located in the Federal State of Saxony in eastern Germany in the middle of Europe. It is a logistical
hub for the European markets, a gateway to the new EU member states and a centre of excellence for Eastern Europe.

Leipzig International Airport connects the city with the world. Every important European metropolis can be reached by
plane in no more than five hours. Via the German air hubs in Berlin, Frankfurt or Düsseldorf worldwide destinations can
also be reached. The airport also boasts optimal logistics conditions with 24/7 cargo operations and an international
freight traffic centre.

The connections to the national, European and international rail network are excellent. Four major federal motorways
cross in Leipzig and run in all directions.

Leipzig as part of the European Union

Germany is a member of the European Union (EU). As a result, German and European laws and guidelines are relevant
for companies in Leipzig. Invest Region Leipzig is as a one-stop agency for all start-up-related issues, such as work
permits, applications for grants or the certification of products and processes, and aims to simplify business start-ups,
particularly for foreign investors.

European Union
The European Union consists of 28 European countries. The EU is responsible, among other things, for a common
customs policy, foreign trade, patents and certifications as well as the definition of competition rules for internal
European markets. Between the EU members, there are no customs tariffs and there is free exchange. 19 of the 28
countries, including Germany, form an economic and monetary union with the Euro as their common currency.

The European Union, by means of the "Horizon 2020" programme, provides various forms of funding for companies,
which are administered and distributed by the following three institutions.

The Federal Republic of Germany
The Federal Republic of Germany consists of 1 federal government and 16 federal states. The federal government and
the federal states exist on an equal footing and independently side by side. Both the federal government and the federal
states have their own state power and can thus enact laws. The majority of legislative powers, however, are vested in
the federal government.

Tasks of the government include foreign affairs and defence, citizenship issues, registration and identification,
immigration and emigration, labour law, currency issues, customs and border protection as well as legislation in the
field of intellectual property and copyright. The majority of taxes are waived by the federal government.

At the federal level, for example, funding is provided for research and development.

Federal State of Saxony
Leipzig is located in the Federal State of Saxony. This is where, for example, closing time and restaurant laws, press and
broadcasting laws, educational and cultural matters are regulated. The Federal State of Saxony is responsible, among
other things, for investment and promotion of innovation in companies.

City of Leipzig
Cities and municipalities form the lowest level of administration in Germany. They are responsible, for example, for
public transport, childcare and the construction of schools and apartments. Cities and municipalities independently

                                                                                                                          4
determine the amount of property tax and trade tax. These taxes in Leipzig are in line with the German average. The
Foreigners Authority of the city is the point of contact for applying for a permanent residence permit.

With the SME Promotion Programme, the City of Leipzig primarily supports innovation- and technology-oriented
projects of existing small and medium-sized enterprises, but also new companies and start-ups.

VISAS AND WORK PERMITS

The Agentur für Arbeit Leipzig ("Leipzig Employment Agency") advises companies and specialists in detail on the
procedures, requirements and legal framework for taking up employment in Leipzig. There are also other partners who
support Chinese companies and their employees in applying for visas and work permits in Germany.

Work visa
As with all citizens from non-EU countries, Chinese citizens also need a work permit before they can start working in
Germany. You can apply for a visa at the German Embassy in Beijing or at one of VFS Global's 15 German Visa Centres.

For the majority of the steps required in setting up a business in Germany, a Schengen visa is usually sufficient for non-
EU citizens (usually called a business visa in this context). The Schengen visa permits 90 days of stay in Germany within
a period of 180 days. The following business activities can be carried out during this period:

    •   Signing and certification of a partnership agreement
    •   Registration with the commercial register (via a German notary)
    •   Business registration
    •   Other preliminary activities during the start-up phase, for example the opening of a bank account or drawing
        up rental agreements
    •   Negotiations and conclusion of contracts with business partners

Academics with a recognised university degree or with a university degree comparable to a German university degree
receive a so-called blue card if they earn an annual gross salary of at least 53,600 euros in Germany. Non-academics can
work in Germany if there is a shortage of skilled workers in their profession in Germany and there is a concrete job offer
from a German company. Language proficiency is not yet required.

Invest Region Leipzig offers companies assistance in applying for work visas for Germany and explains the procedural
steps leading to contact with the responsible authorities.

A special programme for work visas in Leipzig

As part of a Fachkräftesonderprogramm (skilled personnel programme) for the Leipzig region, the Agentur für Arbeit
Leipzig (Leipzig Employment Agency) brokers vacancies specifically for Chinese specialists. Under certain conditions, the
programme is also open to Chinese companies who want to expand into the Leipzig region and also want to hire skilled
personnel from China.

                                                                                                                        5
In order to obtain a work visa within the framework of this special programme, these individuals must have already
acquired a professional qualification in China that matches the job vacancies in the Leipzig region. Applicants must also
be proficient in German and have a level between B1 and C1. Corresponding documentation has to be provided e.g. in
the form of a language certificate. The employees are responsible for the costs of visas, work permits and travel to
Germany which amounts to approximately 2,500 euros.

Upon arrival, the Chinese specialists start working in the selected company in the Leipzig region and simultaneously
acquire a recognised additional German qualification in the first six months of their stay. The costs for this shall be borne
by our partners.

In total, Chinese specialists can stay in the Leipzig region for up to five years for work. Subsequently, an unlimited
residence permit may be obtained provided that the relevant requirements, in particular the language proficiency level
B1, have been met.

ESTABLISHMENT OF THE COMPANY

Invest Region Leipzig is a competent partner for Chinese companies during every phase of a company's establishment.

Research and business partners

Invest Region Leipzig provides Chinese companies with relevant data and facts about their new business location and
supports them in their search for potential research and business partners for a successful start in Leipzig. Chinese
companies are given access to a company succession database. The credit standing of future German business partners
can be checked if required.

Company foundation

Invest Region Leipzig actively supports Chinese companies in setting up a business in accordance with German law.
Companies can choose between different types of companies. The most frequently chosen form of enterprise in
Germany is the limited liability company (GmbH). Chinese companies can also conduct business by setting up a branch
in Germany.

Lawyers, notaries, tax consultants and banks are required to set up a company in Germany. A partnership agreement
must be drawn up and notarised. Once the nominal capital has been paid, the company is entered in the Commercial
Register of the City of Leipzig. Then after registering with the Trade Office, business can begin.

Invest Region Leipzig provides assistance in selecting and arranging appointments so that the company can be founded
quickly.

                                                                                                                           6
MARKET LAUNCH

Approval procedures, patents and certifications
Specialists, such as patent attorneys or testing institutions, are required for the approval of biotechnological and medical
devices. For other products a so-called CE marking is necessary within the European Union. Invest Region Leipzig
establishes contact with the relevant partners and supports Chinese companies throughout all approval procedures.

INDUSTRIAL REAL ESTATE

Leipzig Region, unlike other regions in Germany, has commercial areas that are well connected to the Leipzig/Halle
Airport and has available construction and hall areas with individual layouts. In addition, office space with modern and
stylish furnishings at competitive prices is also readily available.

Invest Region Leipzig offers Chinese companies exclusive access to public and private commercial properties when
searching for commercial space and office properties.

Commercial spaces
The Leipzig region boasts commercial areas in several industrial and commercial areas that are well connected to the
infrastructure and are available in various sizes up to 40 hectares - and, if required, can be operated 24 hours a day.
Warehouses and industrial facilities are available throughout the region. The rental rates for commercial space in the
Leipzig region start at around 10 euros per square metre.

Office properties
Over the past ten years, Leipzig has become a stronghold of German IT companies, primarily due to moderate real
estate prices. A third (29.5%) of the total office space is occupied by companies in the information and communications
sector. Which is high when compared to a city like Berlin that has 16.4% in the information and communications sector.
Property experts expect rent rates for offices in the Leipzig region to remain attractive in the future.

GRANTS

Invest Region Leipzig provides comprehensive advice to Chinese companies about the funding opportunities provided
by the EU, the Federal Government, the Federal State of Saxony and the City of Leipzig.

Most of these grants are in the field of research and development. For example, certain research projects, innovative
approaches in the health industry and the recruitment of experts for research tasks can be funded. The European
Union's "Horizon 2020" research grant programme provides financial support for clinical studies with European
partners. In addition, premiums can be paid for certain innovations.

                                                                                                                          7
Invest Region Leipzig advises Chinese companies on the appropriate grant programmes and assists them in applying for
grants. Many years of experience and close contacts to key authorities can significantly shorten the processing period
and significantly increase the chances of obtaining a grant.

Below, two important grant programmes for Chinese companies are described in more detail.

GRW - Investment grant

The GRW investment grant is a programme offered by the Federal State of Saxony to promote the regional economy,
to strengthen the competitiveness of enterprises, to create new jobs and to safeguard existing jobs in the long term. It
supports companies, for example, in investing in new economic activities, in altering their production processes or in
expanding their production capacities. Grants may be awarded to both small and medium-sized enterprises and, under
certain conditions (e.g. in the context of setting up a new establishment), to larger enterprises.

Funded companies
Funding is granted to companies in selected sectors of trade and industry which have their headquarters or branch in
Leipzig or intend to set up a branch in Leipzig.

As part of this grant programme, companies can choose between two forms of investment support:

1. Material cost grant
The eligible capital expenditure covers buildings, new depreciable tangible fixed assets and intangible assets (e.g.
software licences). Funding is available, for example, for the construction or enlargement of a business establishment,
the expansion of production (diversification) or a fundamental change in the production process of an existing site, and
the acquisition of sites that have been closed down or are threatened with closure.

The size of the grant depends on the size of the company:

Sample calculation

A small company with 30 employees from the manufacturing industry is planning to set up a production facility in the
Leipzig region. Total investment is 10 million EUR. The new plant will create 10 new long-term jobs.

After examining the total costs, 80% of the investment costs, for example, are eligible. Which corresponds to 8 million
EUR in possible grants. The number of jobs created, however, influences the size of the grant; for 10 new jobs, a
maximum of EUR 7.5 million would be available (a maximum of EUR 750,000 per job).

A small company is eligible for a 30% GRW grant. Possible funding (non-repayable grant) is calculated as follows:

                                                                                                                      8
7.5 million EUR x 30% = 2.25 million EUR

2. Payroll cost subsidy
This grant is intended to cover salaries for newly hired persons for a period of two years. These have to be permanent
jobs that are tied to investment in eligible assets and that are created during the first three years following the
investment.

Funding is available for permanent jobs with an annual gross income (including employer's contribution) of at least EUR
35,000 or an employee's annual gross income (excluding employer's contribution) of at least EUR 31,100. The funded
permanent jobs must either call for above-average qualifications or enable particularly high added value or be created
in an area with particularly high innovation potential.

The maximum gross annual labour cost per newly created permanent job is EUR 70,000.

Grants received under this funding programme do not have to be repaid by the companies. Invest Region Leipzig also
advises Chinese companies with regard to further conditions and supports them in their application.

KETs pilot lines

The KETs pilot lines are a special funding measure for selected projects with a high level of innovation and sustainable
economic exploitation. Funding is intended to serve as a springboard to facilitate the implementation of particularly
promising research and development results into industrial series production. The grant programme is financed by the
European Union and the Federal State of Saxony.

What is funded?
Funding is provided for research and development work on pilot lines in the field of key technologies of particular
importance to Leipzig (e.g. microelectronics, nanotechnology, photonics and biotechnology). The main funded costs are
personnel costs for developers and technicians for the construction and optimisation of the pilot plant as well as
material costs for tests and sample production.

Funded companies
Commercial enterprises or enterprises in the business-related service sector as well as - under certain conditions -
scientific institutions in association with enterprises are eligible for funding.

Grant amount
In this funding programme, a grant of up to 80% of the fundable project costs is awarded. The total amount of the grant
awarded to the project or cooperation shall not exceed EUR 20 million.

                                                                                                                      9
According to the size of the company and the form of cooperation, different levels of funding are possible:

                                                                                             Cooperation with
                                                Cooperation with       Cooperation with
                                                                                             a    small    or
 Recipients               Individual            an         academic    a          large
                                                                                             medium-sized
                                                institution            enterprise
                                                                                             enterprise

 Small enterprises        70%                   80%                    80%                   80%

 Medium-sized
                          60%                   75%                    75%                   75%
 enterprises

 Large companies          50%                   50%                    50%                   65%

 Academic
                          Not eligible          Not eligible           50%                   65%
 institutions

Grants received under this funding programme do not have to be repaid by the companies. Invest Region Leipzig also
advises Chinese companies with regard to further conditions and supports them in their application.

EMPLOYEES

As part of the relocation process, Invest Region Leipzig also supports Chinese companies in recruiting suitable specialists
in the region. To this end, it cooperates with local labour market partners, e.g. the state employment agency (Agentur
für Arbeit), private personnel service companies, educational institutions, schools and universities.

Invest Region Leipzig's services include the following:

    •   Analysis of the regional labour market (e.g. salary structures, identification of search periods for specialists,
        applicant profiles as examples)
    •   Information on qualifications and training
    •   Counselling on labour market development (e.g. applying for grants in the form of wage grants)
    •   Networking with various regional employment agencies and personnel service providers

                                                                                                                        10
LEIPZIG ECONOMY - SELECTED INDUSTRIES

Automotive

The automotive industry is one of the youngest and yet most influential in the Leipzig economy and has been ever since
1999, when Porsche decided to build the Cayenne production plant here. BMW followed the sports car manufacturer
to Leipzig about two years later. Since then, more and more suppliers have moved closer to the production complexes.

Porsche and BMW are two premier manufacturers that strengthen Leipzig's reputation as a business location
worldwide. The models BMW 1 Series, BMW 2 Series, Porsche Panamera and Porsche Macan are manufactured here.

The Leipzig automotive industry is further characterised by small and medium-sized companies operating in upstream
production stages. Thanks to excellent motorway and rail connections, a freight traffic centre and the international 24/7
freight airport, Leipzig is an ideal location for the automobile industry.

Leipzig is a pioneer in electric mobility and is currently the largest production centre for electric and hybrid vehicles in
eastern Germany. As of 2021, the Volkswagen plant in Zwickau, 60 kilometres away, will be dedicated exclusively to the
production of electric vehicles. The largest Chinese battery cell manufacturer for the automotive industry (CATL,
Contemporary Amperex Technology) is set to build one of the largest production plants in Europe in neighbouring Erfurt
by 2022.

Information and Facts
•   7.4% of Leipzig employees work in the automotive industry
•   The number of employees working in the automotive industry has increased by 107% since 2005
•   The number of companies in the automotive industry has risen by 32% since 2005
•   The automotive industry in the Leipzig region has increased its sales by 66% since 2009
•   Almost half of all automobiles produced in eastern Germany now come from Leipzig (vehicle production 2017:
    402,482)

Research and Development Landscape
The German Biomass Research Centre is developing methods to reduce catalytic emissions from chemical bioenergy
sources and fuels.

The Forschungs- und Transferzentrum ("Leipzig Research and Development Centre") acts as a link between the economy
and the university. It is a cooperation and contact partner for companies from all industries that need to develop
technical solutions in the field of embedded systems (hardware/firmware/software) and sensor technology. Its research
areas include industrial and wireless data communication, sensors and actuators.

The Fraunhofer Center for International Management and Knowledge Economics scientifically supports companies in
the conception, improvement and implementation of new business models.

The Helmholtz Centre for Environmental Research conducts research on, among other things, alternative fuels.

Networks
Leipzig is home to the Automotive Cluster Ostdeutschland (ACOD). This network aims to connect automobile
manufacturers, suppliers, service providers, research institutes and public institutions and to advance the automotive
industry in the field of digitisation and electro mobility.

                                                                                                                         11
Other local industry networks are the AMZ Netzwerk Automobilzulieferer Sachsen ("AMZ Saxony Automotive Supplier
Network"), the AMZK Automobilzulieferer Kunststofftechnik Sachsen ("AMZK Network of Automotive Plastics
Technology Vendors in Saxony") and the Gießereinetzwerk Leipzig ("Foundry Network Leipzig").

Life Sciences

More than 4,000 healthcare companies, many prestigious research institutions and internationally recognised clinics
form an extensive life science network in the Leipzig region. Leipzig boasts a broad spectrum of high-performance
medicine and research, regenerative medicine and biotechnology. The Leipzig University, the University Hospital Leipzig,
the Leipzig Heart Center and the Fraunhofer Institute for Cell Therapy and Immunology exemplify the numerous
scientific institutes and clinics.

The large number of international health congresses and medical fairs, such as OTWorld, the world's leading trade fair
for orthopaedics and rehabilitation technology, and the World Congress for Orthopaedics and Rehabilitation
Technology, underscore Leipzig's significance as a location for health.

Information and Facts
•   86% more employees have been employed in Life Sciences since 2005
•   The number of companies in the health industry has risen by 28% since 2005
•   Industry-specific incubator BIO CITY Leipzig
•   BioCity Campus is to be established in the immediate vicinity of the renowned university clinics, the extensive
    veterinary medicine facilities and the German National Library, building on the scientific, research and development
    facilities located on the former exhibition grounds since the beginning of the millennium.

Research and Development Landscape
In addition to the famous Leipzig University, various institutes of renowned research associations such as the Fraunhofer
Institute for Cell Therapy and Immunology, the Max Planck Institute for Cognitive and Brain Sciences or the Helmholtz
Institute for Metabolism, Obesity and Vascular Research are also based in Leipzig. They conduct research in areas such
as surgery, sports and rehabilitation, diagnostics and e-health.

In Focus: Fraunhofer Institute for Cell Therapy and Immunology
The Fraunhofer Institute for Cell Therapy and Immunology (IZI) researches and develops special solutions at the
intersections of medicine, biosciences and engineering sciences. Its main tasks include contract research for
biotechnology, pharmaceutical and medical technology companies, clinics, diagnostic laboratories and research
facilities. For that purpose, clean rooms are also available.

There are a number of ways in which cooperation with the Fraunhofer IZI can be structured, depending on the needs
of the researching companies. This ranges from research services on behalf of a company to the development of
innovative cutting-edge technologies in joint projects. In many cases, public funding is possible for these purposes.
Fraunhofer IZI has many years of experience in the field of funding and supports its cooperation partners.

In focus: BIO CITY Campus
The BIO CITY Campus is one of the 15 best incubators in Europe and is open to both established companies and start-
ups in the fields of biotechnology, biomedicine and healthcare. Some 40 companies, service providers and scientific
institutions with a total of around 500 employees conduct research and work here on a total area of 20,000 square
metres.

                                                                                                                      12
As a result of this close cooperation between business and science, the paths between theory and practice, between
research results and application are shorter than at other locations. Both start-ups and companies in the healthcare and
biotechnology industries will find customised laboratory and office space with high-tech equipment at very favourable
conditions in the incubator. They work door to door with research institutes of the Fraunhofer and Max Planck Societies
and with institutes from the renowned Leipzig University. Contacts to medical users and investors as well as a unique
mind-set are included.

Networks
biosaxony – The Biotechnology & Medical Technology Cluster in Saxony
This cluster is responsible, among other things, for initiating projects between the business and scientific communities,
providing services and know-how, and presenting regional competencies in the fields of biotechnology and medical
technology. The goal is to support the value-adding expansion of these interdisciplinary technologies and to strengthen
the Saxony economic region. The network also focuses on promoting young innovative companies.

Association for Health Management
The Verein zur Förderung der Gesundheitswirtschaft in der Region Leipzig e.V. ( Association for the promotion of the
health industry in the Leipzig region) would like to increase the quality of health care substantially with an intensive and
close network of the participants in the region. The objectives are the cooperation of members and the quality as well
as efficiency of medical care in the region.

Other industry networks include the Bundesverband Deutscher Innovations-, Technologie- und Gründerzentren e.V.
(German Association of Innovation, Technology and Business Incubation Centres), HEALTHY SAXONY - Verein zur
Förderung der Gesundheitswirtschaft e.V. and the DIALOG - Tissue Engineering network.

                                                                                                                         13
Energy and environmental technology

Leipzig's energy and environmental technology sector is characterised by innovative cutting-edge research and
competitive companies. The business community, science and public institutions are closely interlinked here, and cluster
teams in the fields of bioenergy, electromobility, solar, renewable energies, distributors & services and environment &
water make for a lively exchange across the whole sector.

Furthermore, Leipzig is also a centre for electric vehicle production. BMW and Porsche produce their hybrid and electric
vehicles here. The BMW I3 and I8 as well as the Porsche Panamera Hybrid, and from 2021 also the Porsche E-Macan,
are manufactured in the Leipzig plants.

Information and Facts
•   32% more people employed in energy and environmental technology since 2005
•   25% increase in the number of companies in the sector since 2005
•   Smart Infrastructure Hub Leipzig: The Federal Ministry of Economic Affairs and Energy has identified innovative
    centres in Germany in which specific development can be promoted. The city of Leipzig specialises in Smart
    Infrastructure and is working on technologies for the modern energy industry, Smart City and E-Health.

Research and Development Landscape
Leipzig's research community in the field of energy and environmental technology is highly diverse. These include the
Helmholtz Centre for Environmental Research - UFZ, the German Biomass Research Centre (DBFZ), the German Centre
for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig, the Leibniz Institute for Tropospheric Research and the
HHL Leipzig Graduate School of Management.

In Focus: DBFZ German Biomass Research Center gGmbH (DBFZ)
The German Biomass Research Center (DBFZ) is an interdisciplinary research institute that studies technical, economic
and ecological aspects of the use of biomass as an energy source. It is equipped with special research facilities like a 600
m³ research biogas plant, special fermenters, test stands for hydrothermal processes, carburettors and engine test
stands for biofuels.

In Focus: Helmholtz Centre for Environmental Research (UFZ)
The UFZ focuses on the complex interactions between humans and the environment in used and disrupted
environments, especially in densely populated urban and industrial conurbations and near-natural environments.
Researchers at the UFZ are developing concepts and procedures to help safeguard the natural resources of life for
future generations. A team of 170 employees are mainly researching chemicals in the environment or looking for ways
to use bacteria to produce hydrogen from sunlight and carbon dioxide as the energy source of the future.

Networks
Energy and Environmental Technology Network
The Netzwerk Energie und Umwelttechnik (NEU) e.V. (Energy and Environmental Technology Network) is a network that
brings all the leading scientists, entrepreneurs and politicians in the Leipzig region together from the fields of education,
bioenergy, electromobility, energy efficiency, solar energy, the environment and water, and organises joint events. They
initiate and manage a large number of projects in the energy sector.

                                                                                                                          14
Leipzig Hydrogen Region
The Leipzig network HYPOS (Hydrogen Power Storage & Solutions) is working to establish a model region for hydrogen
in Germany. The aim is to accelerate the production, storage, distribution and broad application of green hydrogen in
the chemical industry, refinery, mobility and energy supply sectors.

Logistics

A new logistics hub for international companies such as DHL, AeroLogic, Lufthansa Cargo and Future Electronics has
been developing in the Leipzig region since 2006. In particular, the 24/7 service at Leipzig/Halle Cargo Airport, the
qualified and motivated workforce, the ongoing cooperation between the university and industry, and the excellent
research infrastructure provide a first-class logistics and added value for the automotive, mechanical engineering and
microelectronics industries. The Leipzig region with its excellent infrastructure is always in the top 5 in comparison to
other logistics regions in Europe.

Leipzig-China Train Transport
Since 2011, container trains have been running daily on the North Route between Leipzig and Shenyang in the northeast
of the People's Republic of China, which is about 13,000 kilometres long. The 10,000-kilometre-long southern route
connects Chengdu, Chongqing and Zhengzhou.

This Eurasian land route is used by the local automobile manufacturers BMW and Porsche, and others, to transport
their vehicles. With a 23-day transport time, the Trans-Siberian route is about twice as fast as a ship.

In 2018, the most modern train formation facility in Europe was opened in the region - co-financed by a Chinese
consortium. As a result, the region also has excellent connections to the northern German ports of Hamburg and
Bremen.

In focus: DHL air freight hub at Leipzig/Halle Airport
DHL opened its European hub at Leipzig/Halle Airport in 2008 and has since invested EUR 655 million at this location.
The distribution centre is 87,000 square metres in size and has a sorting capacity of up to 150,000 shipments per hour.
Every night, 5,700 employees move 2,000 tonnes of freight in the form of 350,000 shipments. On average 65 aircrafts
fly more than 50 destinations worldwide every day, including some 30 flights to Beijing, Shanghai and Shenzhen.

                                                                                                                      15
Information and Facts
    •   Trimodal transport network: excellent mobility by road, rail and air
    •   Daily freight traffic to major European ports
    •   Worldwide rail connections, notably to China
    •   24-hour cargo airport with an annual cargo volume of over 1 million tonnes
    •   99% more people working in logistics since 2005
    •   11% increase in the number of companies in the sector since 2005

Research and Development Landscape
There is an open space for innovation, demonstration and collaboration in the Logistics Living Lab at the Leipzig
University dedicated to meeting tomorrow's logistics challenges with innovative information systems and technologies.
The systematic research process brings together logistics players from industry, academia and administration to make
tomorrow's logistics more efficient, greener and safer.

Some of the research topics are Cloud Logistics, Big and Smart Data architectures for logistics, the Internet of Things
(IoT), robotics and automatisation, driverless transport systems/drones for "Last Mile" deliveries, Shareconomy Logistics
as well as linking logistics with associated fields (e.g. Smart City, Smart Home, Smart Energy Logistics).

Network
Founded in 2008, the Network Logistik Mitteldeutschland (network for logistics in Central Germany) represents the
interests of the logistics industry in the Leipzig region and the surrounding region. The approximately 140 members are
logistics companies, the Leipzig Economic Development Office, chambers of commerce and organisations as well as
research and educational institutions. Its aim is to promote joint business development and to set trends by means of
innovation and know-how transfer.

Every year the network organises the International Transport Forum, the most important meeting for the international
transport industry. The event brings together ministers, key decision-makers from the industrial sector and cutting-edge
researchers, as well as civil society representatives from more than 50 countries.

                                                                                                                      16
CONTACT

If you have any questions or would like support in relocating to Leipzig, the Invest Region Leipzig team is happy to help.

    Invest Region Leipzig GmbH

    Michael Körner

    Managing Director

    Markt 9

    04109 Leipzig, Deutschland

    service@invest-region-leipzig.de

Alternatively, you can contact the CICCPS liaison office in Leipzig and arrange your initial meeting in Chinese. The CICCPS
team works closely with the Invest Region Leipzig team.

   CICCPS Liaison Office Leipzig

   Ingo Hanschmann

   Office Manager

   Deutscher Platz 5a

   04103 Leipzig, Germany

   ihanschmann@ciccps.eu

                                                                                                                        17
You can also read