Berlin – German companies that are managed by a parent company abroad account for approximately 20 percent of the total business volume of German industry. In 2006, these companies employed 1.9 million workers, excluding the financial sector, and had a total business volume of EUR 844 billion. Branches and subsidiaries of foreign-held companies in Germany therefore significantly support the German economy. These results come from a study on the integration of German companies abroad conducted by the Federal Statistical Office of Germany.

The majority of foreign companies that establish a subsidiary in Germany are based in its European neighbor countries. The European nations that have the greatest number of affiliate branches in Germany are Switzerland and the Netherlands. The roughly 3000 Dutch subsidiaries in Germany comprise almost 15 percent of all the firms under foreign supervision. In 2006, Dutch subsidiaries in Germany achieved 14 percent of the total foreign-based business volume. With more than 300,000 employees, these firms accounted for approximately 16 percent of the total employment by foreign-held firms in Germany.

The USA and Japan lead the list of the most important investors from outside Europe. Germany’s largest investor is the USA. In 2005, 15 percent of German companies were subsidiaries of US parent companies. These companies, with a total of 430,000 employees, generated 24 percent of the total business volume for companies based abroad.

Foreign-based companies are most active in the processing sector. One-fifth of the total business volume created in this field is by companies based outside of Germany. Fifteen percent of those employed in this industry work for foreign subsidiaries. The total business volume in some sectors is almost exclusively created by foreign-held companies, for example in tobacco processing. Further branches in which foreign subsidiaries are especially active include trade, automotive repairs and maintenance of used goods, transportation, and business services.

In certain branches, the total business volume by foreign-controlled firms is created almost solely by companies that have a parent company in a specific foreign country. This is the case in the automobile manufacturing industry: 67 percent of business is conducted by subsidiaries of US companies.

Contact:

Germany Trade and Invest - Gesellschaft für Außenwirtschaft und Standortmarketing mbH
Friedrichstraße 60
10117 Berlin
Eva Henkel
Telefon: +49(0)30 200 099-173
Fax: +49(0)30 200 099-111
office@gtai.com