Looking for somewhere to expand your business? Consider Leipzig. This dynamic German city is a leading light in a region with strong investment potential.

Leipzig’s ascent into topflight of European soccer is not the only thing surprising audiences unfamiliar with this aspiring German business destination. Recently, however, the spotlight has started shining on the fastest-growing region in Germany. The latest edition of Lonely Planet highlights Leipzig as the top German destination, calling Leipzig ‘Cooler than Berlin and more hip than Munich’. However, it’s not just tourists and students who are attracted to Leipzig; businesses are recognising the benefits of Leipzig’s central European location and its proximity to Germany’s second-largest air freight hub (ranked 4th in Europe).

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In terms of infrastructure, economy, cultural offerings and quality of life, the metropolis in Saxony compares favourably with other large cities in Germany and other parts of Europe. In the past 20 years, companies such as DHL, Porsche, Future Electronics, amazon, BMW, and Beiersdorf AG have set up branches in Leipzig and the neighbouring districts. The region is home to world-class research and education. Around this trade fair city, a lake scape has emerged from former strip-mining pits, attracting nature lovers and water sports enthusiasts. These elements create a force that attracts professionals, young families, scientists, creatives and entrepreneurs to the region.

Since the fall of the Berlin Wall, Leipzig has become a success story for democracy, internationality, and economic transformation. It is now Germany’s fastest-growing city. Given the region’s strong economic growth and increasing job prospects the population is projected to reach over 700,000 by 2035. With 11 universities and other higher education institutions, more than 40,000 students live and learn in Leipzig each year: all the cultural amenities of one of Europe’s most liveable cities are within easy reach. Consequently, the city ranks high in Europe for the availability of educated talent and skilled workforce. Affordable and available prime office space, business parks and greenfield sites, and generous investment subsidies, make Leipzig and its surrounding region a first-class investment destination.

A digital mindset

World-class research, and state-of-the-art infrastructure all drive Leipzig’s innovation economy. The tech and digital industry are Leipzig’s fastest-growing sector representing nearly 35 per cent of available offices space. Around 15,000 employees work in over 1,200 start-ups, scale-ups and large ICT companies. Big hitters such as adesso, Arvato Systems, BASF and Siemens also have operations here. HHL, one of the leading private business schools in Europe, runs the successful start-up accelerator SpinLab providing a springboard to scale up innovative business ideas. The European Energy Exchange (EEX) set up in Leipzig in 2008. So, when the German government started a digital hub initiative in 2016, setting up hubs in cities throughout the country, naturally Leipzig was named as one of the twin hubs for smart systems, IoT and energy. In 2019, Germany’s agency for disruptive innovation (SPRIN-D) moved to the city, cementing Leipzig as the place for digital transformation and business growth.

A centre for trade

Leipzig has always been a significant player for international trade routes and supply chains. The Leipzig Messe is a centre for international trade fairs. As a trade fair city Leipzig has a 1,000-year trading history. Germany has more than 83 million residents, with a spending power of 23,766 euros per capita, with a potential 150 million consumers in the nine countries that border it. Leipzig is at the centre of Europe with a staggering amount of potential national and international business connections. The region is known as the multimodal logistics hub of Central Europe. Its attractive transport links include connections to three major autobahns and a world class station with direct links to the Deutsche Bahn rail network. Home to the largest of DHL Express’ three global hubs, the 24/7 Leipzig/Halle Airport is Germany’s 2nd busiest cargo hub.

An innovative research hub

The German Biomass Research Centre’s work is an example of research that enables innovations in products and services that are sustainably established on the market to ensure a rapid economic transformation into a climate-neutral society by 2050.

For the past 20 years, Leipzig’s phenomenal group of renowned research organisations have been working towards becoming world leaders in applied medical research and innovation in healthcare. With several successful life science and Biotech companies and a purpose-built life sciences campus set to expand further, the city is also on its way to becoming a leading healthcare & biotechnology hub in Europe. As healthcare continues to transform digitally, The Medical Forge Leipzig is supporting start-ups and innovative SMEs to bring their medical products to the German healthcare market. Innovators in Medtech and Healthtech should consider branching out here. BIO Europe, the global life sciences partnering event, will be held in Leipzig in October 2022.

Your expansion partner

How can Invest Region Leipzig help? As the international economic development organisation for the city and surrounding districts, Invest Region Leipzig supports companies considering expanding their business to the Leipzig Region, helping them shape a bespoke location strategy. Funded by the Leipzig Chamber of Industry and Commerce and Leipzig’s local authorities, IRL provides essential decision-making data on market opportunities, competitors and suppliers, the workforce, and potential candidates. It works alongside property partners to help business clients find the right office, industrial or logistics base at the right cost. What’s more, all IRL services are confidential and free of charge. So, if you are looking to expand your operations into Europe, Leipzig may well be the right location for you.

To discover more about regional business opportunities and our service to support expansion to Leipzig, visit www.invest-region-leipzig.com


Case studies

Dräxlmaier

Automotive supplier Dräxlmaier has built a manufacturing facility in the Leipzig region to support the increasing electrification of vehicles. It will complete high-voltage battery systems for premium SUVs. DRÄXLMAIER has made a conscious decision favouring Saxony, with its highly qualified specialists, as a business location. Their investment in E-mobility helps strengthen Leipzig as an E-Mobility region.

Beiersdorf AG

Beiersdorf AG (owner of the NIVEA brand) will open a new cosmetics production facility in 2022 and a new distribution hub in 2025. With 200 new jobs, the facility will form part of Beiersdorf’s Europe-wide strategic manufacturing network. Deliberately choosing Leipzig for its central location and excellent infrastructure, these facilities represent Beiersdorf’s most significant investment to date globally. Around 600 new jobs will be created in Leipzig-Seehausen. Beiersdorf wants to utilise green energy to achieve CO2-neutral operations and sustainability LEED Gold certification. Leipzig plays a pioneering role in this respect.

Mercateo

In December 2019, the Mercateo Unite Group, operator of procurement platforms for business customers, announced that it would be relocating its headquarters from Munich to Leipzig, moving into its new head office in Leipzig in 2020. The group is now building a new city centre headquarters for up to 600 employees to be completed by 2023.

This content is sponsored and created by Invest Region Leipzig and hosted by fDiIntelligence.com and does not involve fDi's journalists.