Germany’s stars seem to be aligned in a wining direction. With the Federal Republic assuming the rotating presidencies of the European Union and the Group of Eight (G8) developed nations, its economy is resurging.

A recent Ernst & Young (E&Y) survey revealed that investment projects rose about 57 percent in a year, thereby indicating Germany remains one of the most attractive expansion locations in Europe.

In fact, the survey reported that Germany ranks No. 4 among the 10 most popular investment locations worldwide behind only China, the United States and India. The E&Y survey indicated that expertise in engineering, research and logistics are advantages expanding companies find attractive when considering Germany. These factor well for Germany’s growing sectors: environmental technologies, logistics and biotechnology.

Thanks to Germany’s progressive environmental policies, the country is a hotbed for environmental technology. It’s a leader in solar energy, a market that accounts for 55 percent of global solar electricity production. Last year, Germany’s photovoltaic (PV) industry generated 3.8 billion euro in sales.

Germany has positioned itself as an attractive site location for solar energy investments because of its Renewable Energies Act, the availability of highly qualified work force, and its supply of scientific research centers and universities, such as Fraunhofer and Max-Planck-Institutes. These factors attracted First Solar of Phoenix, Ariz., to open a new 115 million euro facility in Frankfurt/Oder in July.

“As the world’s largest solar power market, Germany is the ideal location for our production facility,” said Bruce Sohn, president of First Solar. “The First Solar location in Frankfurt (Oder) is testament to the successful environmental and economic policies in Germany.”

Tucson, Ariz.,-based Global Solar Energy announced in January plans to invest $30 million in a production facility in Berlin for thin film solar cells. The company is also expanding in Arizona.

“The expansion of our production capacity in Tucson and Berlin puts us in a position to manufacture our high-grade solar cells on a new, industrial scale, which will enable us to become an international supplier of thin-film solar cells,” said Mike Gering, CEO and president of Global Solar Energy.

The plant, which will be built at the Berlin-Adlershof Science and Technology Park, is expected to have a production capacity of about 30 megawatts. Production is scheduled to begin in the first half of next year. The company has already sold 80 percent of its projected 2008 output in Berlin.

Palo Alto, Calf., startup Signet Solar broke ground earlier this year on a new 50 million euro R&D, and production center in Mochau near Dresden, a facility that will serve as a production line and R&D headquarters.

The firm chose the Dresden area largely because its primary silicon supplier, U.S.-based Applied Materials Inc., has a facility there. Additional factors included support from the state government and minimal bureaucratic hurdles from the local authorities.

Operations should begin by mid-2008. The company expects to have 130 employees at the location.

The investment represents s another success story for the eastern German region known as “Silicon Saxony.” There are currently 250 companies, with a total of 17,000 employees, engaged in the semiconductor, electronics and micro system industries in the Saxony region.

Canadian firms are also investing in Germany. 5N Plus Inc. of Saint-Laurent, Quebec, is planning to build a 9 million euro production facility in Eisenhüttenstadt. The plant will process materials such as cadmium telluride and cadmium sulphide for use in the solar industry. This is the company’s first investment outside of Canada.

ARISE Technologies Corp. of Waterloo, Ontario, is building a PV cell manufacturing plant in Bischofswerda. Ian MacLellan, CEO of the company, said the German workforce as one of the main attractions for high-tech companies.

“We selected Germany because it is the largest solar market in the world,” he said. “It has a high concentration of solar technology companies and has access to skilled technical labor.”

Pfizer Grows Operations

Germany is the largest market for biotechnology and pharmaceuticals within the EU. Biomedicines is the focus of 366 companies there; 85 have approved biopharmaceuticals or are testing new candidates in clinical trials.

Pfizer began construction in September of a new 60 million euro production plant in Illertissen, Bavaria. Pfizer already employs about 600 workers in the region. Construction should be completed by early 2008.

Walter Köbler, the head of Pfizer in Germany, said that the “high qualification and know-how of our staff” turned the balance toward investing in a new production site in Illertissen.

Despite the high degree of automation, Pfizer intends to create 50 jobs.

The company currently employs 610 workers in Illertissen, which is the largest drug production site in Bavaria.

Quintiles Transnational Corp., a global pharmaceuticals services company based in Research Triangle, N.C., is launching an operation in Berlin. The company’s Berlin offices will work on clinical trials of medicines.

Recognizing the importance of biotech sector, Germany’s Federal Ministry of Education and Research (BMBF) established a new 150 million euro fund available to younger, experienced scientists who can convert their biotech research activities into entrepreneurial ventures. Called ExistGo-Bio, the incentive program is directed specifically at those scientists who have already acquired experience in research teams, industrial R&D or clinical settings.

DHL Opens Logistics Center

By far, Germany’s logistics sector outweighs all other EU nations. Logistics currently accounts for 7.5 percent of its gross domestic product. Germany accounts for 25 percent of the 585 billion euro spent on logistics services in Western Europe annually.

With more companies outsourcing logistics operations, contract logistics has become the booming sector within logistics. Contract logistics now accounts for more than one-third of the market and analysts forecast growth of up to 15 percent per annum.

DHL Exel Supply Chain, for example, is opening a new logistics center in Duisburg in mid-2008. The contract logistics specialist of Deutsche Post World Net (DPWN) will use the 36,000 square yard facility to provide warehousing, transport and value-added services for customers in the consumer goods sector.

The business of various manufacturers will be consolidated in a multi-user terminal, which DHL currently manages in separate locations in Germany’s Rhine/Ruhr region.

Within the sector, road, rail and air transportation account for 40 percent of the entire domestic market; storage and freight handling another 25 percent; and administration and management for the rest. The sector handles twice as many industrial products as consumer goods (per volume).

Committed to retaining Germany’s leading position in logistics, a Freight Transport and Logistics Master Plan put together by the coalition government is considering ways to implement a more efficient transport system.