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Munich and Nuremberg now twin cities Munich Europes best airport

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                                                                                                                                                A Regular Update on Economic Developments in Bavaria
    in Bavaria
                                                                                                No. 63 September 2006




BAVARIA IN THE NEWS
                                                Munich and Nuremberg:
                Ferenc Krausz:                  now twin cities
                major prize                     A new 300 kilometer-per-hour rail link has      Also serving Ingolstadt and its booming
                for the founder                 cut the travel time between Bavaria’s two       automotive cluster, the once-an-hour line
                of attotechnologies             major metropolises to 78 minutes.               will further the merging of Munich
                See page 2
                                                Commissioned in late May, the € 3.6 billion,    and Nuremberg into a single business
                                                171-km long line is a masterpiece of engi-      region inhabited by nearly 3 million people
                Straubing:                      neering, having required the building of        and served by no less than 25 trains each
                what’s new in renewable fuels   nine major tunnels and of hundreds of           way each day – and by one of the country’s
                See page 2                      bridges.                                        major autobahns (freeways).

                Key figure:
                Bavarian economy boosts GDP
                See page 2
                                                Munich:
                Bavaria’s automobile
                industry:
                                                Europe’s best airport
                performance from personnel      Munich is the best airport in Europe and        seasonal changes (the beginning of sum-
                and production technologies     one of the top three worldwide. That’s          mer vacation) and special events (the FIFA
                See page 3                      according to Skytrax. In compiling its World    World Cup®).
                                                Airport Awards 2006, the authoritative Lon-
                A state of entrepreneurs:       don-based air travel specialist polled 7.2      The busiest day in Munich’s 14-year history
                Michael Käfer                   million passengers from 93 countries. The       has put the airport on course to register
                and his catering empire         Award’s rankings were comprised of the          yet another record-breaking year of pas-
                See page 3                      airports’ performance in 40 categories,         senger traffic in 2006. Last year, Munich
                                                with these including punctuality, times of      served 28.5 million passengers, up 6%
                                                transfer, ease of navigation and more.          from 2004. The forecast for 2006: at least 30
                Cruising Bavaria’s                                                              million passengers.
                waterways:                      Though gratifying, the results were any-
                pleasures to be pursued         thing but a surprise. Munich had achieved       Numerous though they are, these passen-
                See page 4                      similar results (number one in Europe,          gers account for only half of the shoppers
                                                number four in the world) in the 2005 rank-     patronizing the airport’s more than 200
                Foundation stone:               ings. Skytrax’s findings were confirmed by      shops, restaurants and service facilities.
                Garching’s Business Campus      another mid-2006 study, this one published      The rest are comprised of the 24,000
                See page 4
                                                by Capital. The business magazine               employees working for the some 500 com-
                                                employed 107 criteria in evaluating Ger-        panies based in the airport, and are round-
                                                many’s airports. Top ranking: Munich!           ed out by residents from surrounding com-
                Lars Bosse:
What’s inside




                                                                                                munities who like to take advantage of the
                our representative in Poland    The quality of Munich Airport’s operations      large range of shopping options plus con-
                See page 4
                                                was put to the ultimate test on June 2, 2006.   venient shopping hours.
                                                During a period of 24 hours, there were
                Trade fairs in Munich           1,219 takeoffs and landings at the airport,     A single fact – 47% – shows how important
                and Nuremberg                   making it the busiest day ever at Munich.       these ‘non-aviation activities’ have become
                See page 4                      The reason behind this all-time high was a      to Munich Airport. The percentage refers to
                                                mix of long-term trends (the development        the share of the airport authority’s rev-
                                                of Munich into a world-class hub), and of       enues generated by its stores.
Bavaria
    in the News



Major prize for the founder                                                                                     26.1 % – That’s how much the
                                                                                                                Bavarian economy grew over
of attotechnologies                                                                                             the last decade. The largest of
                                                                                                                any state in Germany, the rise
He works with Theodor Hänsch, who won            since 2004. He is also a director of the                       boosted Bavaria’s GDP to
2005’s Nobel prize for physics. And he’s         Garching-based Institute for Quantum                           € 32,400 per capita – also the
come up with innovations which, like those       Optics, which is headed by Hänsch.                             highest in the country. The




                                                                                                   Key figure
made by Hänsch, are revolutionizing the                                                                         strength of the state’s econo-
way we view the world. Following in the          Krausz’s prize-winning breakthrough: a                         my induced 426,000 people –
footsteps of Hänsch, he was recently             device using ultra-short laser pulses to                       also a country-wide best mark
awarded the Leibniz prize, the highest hon-      track and manipulate atomic particles. The                     – to migrate to Bavaria from
or in German science.                            device has a resolution of several hundred                     other states in Germany during
                                                 attoseconds. An attosecond is a billionth of                   1994–2004.
Therefore, it’s no wonder that Ferenc            a billionth of a second.
Krausz is being touted as Bavaria’s next
Nobel Prize laureate.                            Developed by Krausz himself, the phase-sta-       material processing. The laser was award-
                                                 bilized laser used in his device displays an      ed a major prize of its own: The association
Born in 1962 in Hungary, Krausz has been a       unexcelled precision and uniformity of            of the world’s leading scientific journals
professor of experimental physics at             operation. These traits have made the laser       named it one of the world’s ten most impor-
Munich’s Ludwig-Maximilians University           an essential tool for cancer treatment and        tant breakthroughs in 2002.



Inside the state
Straubing: what’s new in renewable fuels

On May 31st, Campa Süd made a major deci-        good solution to the world’s growing short-       Danube-side harbor and the RRR
sion. As one of the leading and one of the       age of petroleum.                                 (rail/road/river) freight processing facili-
longest-established (founded in 1992) man-                                                         ties and companies located in it, and the
ufacturer of biodiesel in Germany, the           That news came on the heels of Compatec’s         rich agricultural land surrounding the city.
Ochsenfurt,     Bavaria-based     company        announcement that it would quadruple the
announced that it would build a facility         output of its mammoth wood pellet pro-            The harbor provides bioenergy companies
turning out 250,000 tons a year of the fuel,     cessing complex. Wood pellets are a locally-      with quick and inexpensive access to their
which is widely regarded as being a very         available, environmentally-friendly and           customers. The land is the source of much
                                                 highly economic source of energy.                 of the raw materials processed at the
                                                                                                   BioEnergy Park, which is, conveniently
                                                 Campa Süd’s new facility will be located in       enough, also located in the harbor.
                                                 the same place as Compatec’s existing one:
                                                 Straubing’s aptly-named BioEnergy Park.           Although the projects in Straubing are large,
                                                 The 218 hectare-large park is also com-           they are dwarfed in size by what’s going on
                                                 prised of an incubation center, of a techni-      in the south-eastern Bavarian community
                                                 cal and start-up services complex (to be          of Tacherting. Forming part of Trostberg’s
                                                 completed by the end of next year) and of         chemical cluster, Tacherting is to be the
                                                 fully-developed plots. Two of these have          venue of an Austrian-led € 250 million bio-
                                                 been taken up by Campa Süd and Compatec.          mass heat and power cogeneration plant,
                                                                                                   biodiesel and bioethanol production facility
                             Hof
                  Bayreuth                       The companies’ choice of Straubing                and a wood pellet manufacturing center.
       Würzburg
                        Nuremberg
                                                 reflects and augments the central Bavarian
                                                 town’s rise into one of the world’s centers       The expertise in bioenergy amassed in
                         Regensburg              of renewable fuels. This development was          Straubing, Tacherting and other Bavarian
              Ansbach
                                                 initiated by the state government, which          communities is finding international appli-
                                     Straubing
                             Landshut
                                                 lead-managed the setting up of a Center of        cation, as the agreement concluded in
             Augsburg                            Renewable Resources in Straubing. The             December, 2005 between Bavaria and Que-
                             Munich              Center has become the node of the city’s          bec amply details.
                              Tacherting         burgeoning bioenergy complex.
                                                                                                   To prevent global warming – or to palliate
                                                 The state government’s selection of Straub-       its effects – the agreement fosters the
                                                 ing was based on three factors: the suc-          development and deployment of biofuels in
Bavaria in Europe                                cess of a pilot project in the area, the city’s   both states and in other regions.
                                                                                                                     Bavaria
                                                                                                                          in the News



Bavaria’s automobile industry: performance
from personnel and production technologies
The best personnel + the best production          Reaping the benefits of a three-year, € 14        controlled robot handling ultra-delicate
technologies = the best performance. This         million skills and equipment upgrading            and often dangerous jobs – such as casting
simple equation explains why Bavaria’s            program, Audi’s Ingolstadt-based machine          – previously undertaken by human beings.
automobile industry is flourishing while          tool division won one of Bavarian Quality
others are faltering.                             Prizes in 2006, which are awarded each            Also members of BAIKA are 102 providers of
                                                  year to state companies achieving excel-          development services and 58 research cen-
In 2005, writing yet another chapter in its       lence in their fields of endeavor. The divi-      ters. Of the latter, four are located in Upper
book of personal records, the industry had        sion, which received a similar honor in           Franconia. Situated in the northernmost
sales of € 72 billion, up 1.2% over 2004’s        2004, develops and manufactures the               corner of Bavaria, the region is turning itself
stellar result, which itself was 10% greater      equipment producing and forming the               into a center of automotive engineering.
than that of 2003. Of 2005’s sales, a new         chassis and related components going into
high of € 44.3 billion – or 61% – were reg-       the automobiles stemming from the com-            This development is being impelled by the
istered outside Germany.                          pany and from Volkswagen, its corporate           region’s trumps, which include the avail-
                                                  parent.                                           ability of skilled personnel, low operating
For BMW and Audi, Bavaria’s Big Two auto-                                                           costs and excellent transport links. The
mobile manufacturers, it was yet another          Like BMW, MAN and other state automotive          node of this development is Hof’s 156
year of all-time highs including the number       manufacturers, Audi doesn’t do it all by          hectares-large Automotive Suppliers’ Park.
of cars sold (BMW: 1.3 million, up 10%, and       itself in turning out its high-performance,       In addition to offering fully-developed plots,
Audi: 829,000, up 6%). And the future looks       highly regarded motor vehicles. Found in          the Park is home to the Automotive Center
similar. BMW is forecasting to reach the          the manufacturers’ factories are the robots       Bavaria. Commissioned in 2005, the Center
1.6 million mark by 2010.                         produced by the Augsburg-based KUKA. One          serves as a platform for the development
                                                  of the world’s leaders in the field and a pio-    and testing of technologies and compo-
In a total lack of coincidence, BMW, Audi         neer in the employment of software in             nents by companies and institutes.
and the rest of the state’s automotive clus-      attaining unexcelled precisions of automa-
ter have been investing heavily in person-        tion, KUKA is one of the 1800 companies in        For further information on Bavaria’s automobile
nel and facilities. In the first of a six-year,   the BAIKA (Bavarian Innovation and Cooper-        industry, please contact
€ 10.8 billion program, Audi alone spent          ation Initiative for the Automotive Suppliers     Ms. Mirjam Eisele, Invest in Bavaria
€ 1.7 billion on human and technical capital      Industry) network providing automotive            Widenmayerstr. 17, 80538 Munich, Germany
in 2005. As a spate of recently conferred         manufacturers with advanced production            Tel. (+ 49-89) 24210 7506
awards details, this investment is paying         equipment. The latest from KUKA, itself the       www.invest-in-bavaria.de and www.baika.de
off handsomely.                                   recipient of numerous prizes, is a joystick-



A state of entrepreneurs
Michael Käfer and his catering empire

The VIPs attending the 2006 World Cup             How large the business has become is indi-        Munich suburb. The facility includes a
matches and Formula 1 races. Partygoers           cated by a few telling facts. Its party service   retailing outlet. His Europe-spanning range
at the Oktoberfest. The members of the Ger-       division alone caters some 2,000 events a         of activities notwithstanding, Michael Käfer
man parliament. Visitors at the trade fair        year. These are attended by up to 10,000          is often to be seen in Käfer-Schänke. Locat-
center, theaters and airport in Munich.           people each. Much of the food served by           ed in Munich’s exclusive Bogenhausen dis-
They all have something in common with            Käfer is shipped from a 25,000 square             trict, the restaurant is the flagship of
each other, and with Queen Elizabeth II,          meter-large facility located in an eastern        Käfer’s catering empire.
Michael Jackson and Mikhail Gorbachev.

They relished food provided by Feinkost
Käfer, one of Europe’s leading caterers and       Inside technology
delicatessen retailers. Founded as a deli-        www.key-technologies-in-bavaria.com
catessen in 1930, the Munich-based compa-
ny has been run since 1992 by third gener-        is your free-of-charge link to the best inno-     development community. Maintained in
ation scion Michael Käfer. Under his able         vation and business partners around: the          German and English and updated on a daily
tenure, the company has expanded into a           8,500 companies, institutes, authorities          basis, the website’s database is also avail-
€ 95 million-a-year business employing 800        and associations comprising Bavaria’s             able on CD-ROM.
people.                                           world-class, 19 sector-strong technology
Invest
    in Bavaria



                    Pleasures to be pursued                                                                     Our representative
                    Cruising Bavaria’s waterways                                                                in ...
                    Europe’s longest waterway is the                                                            in Poland is Lars Bosse, who also holds the
                    Rhine-Main-Danube, which links the                                                          position of managing director of the War-
                    North and Black Seas and runs                                                               saw-based German-Polish Chamber of
                    through Bavaria. Western Europe’s                                                           Industry and Commerce. Since earning a
                    largest body of water is the Lake of                                                        degree in Eastern Europe studies, Bosse
                    Constance. Bavaria has a chunk of                                                           has worked in both Poland and Germany in
                    its northeast corner.                                                                       the field of facilitating east-west contacts.
                                                                                                                From 1998 – 2004, he was director of the
                    As the waterway and the lake offer                                                          international business department and of
                    some of the most spectacular                                                                the Euro Info Center at Leipzig’s chamber of
                    scenery in the world, it’s no won-                                                          commerce and industry
                    der that the cruise ships and fer-
                    ries plying their waters are hits                                                           For further information:
                    with the world’s tourists. The same                                                         State of Bavaria Poland office
                    holds true for smaller, if no less        Passau                                            Ul. Miodowa 14, Warsaw, PL- 00-246 Poland
                    beautiful expanses of water in                                                              Tel.: (+48-22) 53 10 500, Fax: (+48-22) 53 10 600
                    Bavaria. Our recommendations:             Ludwig II and to its sumptuously elegant roy-     E-Mail: info@ihk.pl, www.ihk.pl
                                                              al grounds. The Frauenchiemsee is where
                    The Danube                                Christianity took root in Germany. Today the                        ... in Munich ...
                    Ferries and cruise ships ply the riv-     island is a patchwork of Romanesque
                    er, with one main stretch being           churches and structures, of gardens, and of                         MATERIALICA
                    about 400 km between Ulm and              restaurants serving the fish caught by local                        International Trade Fair for Mater-
                    Passau. This all-Bavarian route           anglers. Jumping off point for a ferry-con-                         ial Applications, Surface Technolo-
                    takes visitors through the stun-          veyed tour of Chiemsee and its islands is the                       gy and Product Engineering
                    ningly beautiful Danube River Gap         community of Prien.                                                 October 10 – 12, 2006
                    between Kehlheim and Regens-
                    burg. The Gap is 70 meters wide at        Other “don’t miss” attractions: a day spent                         EXPO REAL
                    its narrowest point, and is com-          on the waters of Starnberger See and of                             International Commercial Property
                    prised of chalk crags towering 100        Ammersee. The two lakes are located just to                         Exposition
                    meters above the water.                   the south of Munich and are the epitomes of                         October 23 – 25, 2006
                                                              summertime la dolce vita. And don't miss
                    The Lake of Constance                     the scenic view you can get on a boat trip on                       SYSTEMS 2006
                    It has the dimensions of an inland        Lake Tegernsee, just an hour by car from                            IIT, Media, Communications
                    sea (being 536 square kilometers          Munich. Another ‘must do’ is a waterside                            October 23 – 27, 2006
                    large). It has one of the greatest        tour the UNESCO-World Heritage city of Bam-
                    backdrops in the world – the Alps         berg. Widely considered one of the most                             ... and Nuremberg
                    rising in the south. And it is lined by   beautiful cities in the world, Bamberg has a
                    some of the world’s most beautiful        Venice-like profusion of canals, rivers and                         ENKON
                                                                                                                Trade fairs ...




                    and lovingly-preserved communi-           ponds.                                                              Trade Fair for decentralized Energy
                    ties. Among them is the island town                                                                           Technology, Business and Efficiency
                    of Lindau. Ferries link this delight-     For further information: www.bayern.by
                    fully picturesque port with Bre-                                                                              IKK
                    genz, Konstanz and other lake-side                                                                            Int. Trade Fair for Refrigeration,
                    destinations.                             Foundation stone                                                    Air Conditioning, Ventilation
                                                                                                                                  both October 18 – 20, 2006
                    The Chiemsee                              Now under development, the northern
Sights to be seen




                    Large expanses of water, moun-            Munich suburb of Garching’s € 250 million,
                    tains rising to the south, charming       230,000 m2-large Business Campus has a                                 Published by: Bavarian Ministry
                    towns – all of these also apply to        great location: right next to that of                                  of Economic Affairs, Infrastructure,
                    Chiemsee. The lake has two other          Munich’s University of Technology, which is                            Transport and Technology
                    attractions – its two main islands –      the top-ranked institution of higher learn-       Prinzregentenstrasse 28 • 80538 München, Germany
                    and these make it one of Europe’s         ing in Germany. The Campus is also on the         Tel.: (+ 49-89) 21 62-26 42 • Fax: (+ 49-89) 21 62-28 03
                    great tourist destinations.               superhighway linking downtown Munich              www.invest-in-bavaria.com
                                                              with the city’s airport.                          Should you wish to subscribe (free of charge!)
                    The Herrenchiemsee island is home                                                           to Bavaria in the News, please contact us:
                    to the palace built by Bavaria’s King     For further information: www.businesscampus.net   info@invest-in-bavaria.de.

				
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