The region as a business location

Southwest Saxony at a glance
The Chamber district Southwest Saxony with an area of 6.500 km² belongs to the Free State of Saxony. In this area live more than 1,6 Mio inhabitants, which corresponds to 35 % of the whole population in Saxony. With a density of population of 249 inhabitants per km² the chamber district Southwest Saxony ranks among the most important urban conurbations in the newly formed German states. Today Saxony is one of the most innovative and popular investment locations worldwide. Through the coactions of economy, research and politics, the Free State of Saxony evolved into one of the most dynamic with regard to economic development.

With its 245.000 inhabitants the city of Chemnitz is the economic, administrative and cultural centre of Southwest Saxony. Together with Zwickau (95.000 inhabitants) Chemnitz is at the same time the centre of the economic region of the same title called ”economic region of Chemnitz-Zwickau–. The economic region of Chemnitz-Zwickau with its one million inhabitants and an area of 1.860 km² can claim to have the highest density of industry in eastern Germany, offering a great variety of opportunities and potential. The high level centre Plauen (67.000 inhabitants), for example, is a traditional business location of great importance. The area around Freiberg, on the other hand, is well known for its innovative development – once a former mining region it developed to today–s semiconductor location in Saxony, also called Silicon Saxony.

As the much vaunted cradle of the German mechanical engineering and vehicle construction the region realized a 150-year lasting success story. In 1989/1990 the Volkswagen AG gave the starting shot for the renaissance of vehicle construction – today the most important industrial sector in Southwest Saxony. Volkswagen Saxony is the top-selling industrial company as well as the biggest employer of the newly formed German states. In Southwest Saxony VW produces in two plants, i.e. in Zwickau and Chemnitz. Following on from that, more than 2/3 of the Saxon automotive sub-suppliers have settled in Southwest Saxony. Other core industries of the technologically oriented region worth mentioning are mechanical- and plant engineering as well as the IT-branch, which all in all characterizes the middle-class nature of the local economy.

Research & Development
Chemnitz is a leading research and development centre with a density of patents, which is far above the national average. About 30 resident research institutes among them e.g. the Fraunhofer Institutes and the SaxonTextile Research Institute, 50 successful local companies with a strong emphasis on research and development together with the most successful technology centre in eastern Germany, the Technologie Centrum Chemnitz (TCC), have all played their part in securing this reputation. The technological universities of Chemnitz and Freiberg, the colleges of higher education in Zwickau and Mittweida as well as the three universities of cooperative education in Glauchau, Breitenbrunn and Plauen are offering the very best conditions for studying, application- oriented research and a close co-operation with companies. The overall aim is to guarantee a dynamic innovation process for companies in the region and ensure that highly skilled specialists and executives will be available here in the long term.

Central Location – Excellent Connections
Its central location in the EU and well-developed infrastructure ensures a highly attractive location for national and international operating companies. The international airports of Dresden, Leipzig and Altenburg can be reached within a radius of 30 to 90 kilometers providing access to every major centre in Europe within three hours– flying time. The most important national transport axes are the motorway no. 72 Hof-Plauen-Zwickau -Chemnitz, motorway no. 4 Frankfurt/Main-Eisenach - Gera- Zwickau-Chemnitz- Dresden- Görlitz and motorway no. 14 Dreieck Nossen - Leipzig - Halle (Saale).

The Automotive Industry – a tradition with a strong future
The resident automotive industry with more than 250 suppliers represents one of the most modern automotive landscapes in Europe. Starting with Horch, Audi, DKW and Wanderer, beyond the Trabant and up to Volkswagen the economic region of Southwest Saxony can refer to a non-stop 100- year lasting tradition of vehicle construction. More than 40.000 highly-qualified specialists and executive staff are employed in the field associated with automotives.

A vibrant sector – mechanical engineering & plant construction
Today, mechanical engineering, plant construction and tool manufacturing gained with its new products and structures again the reputation of being the supporting pillar of the regional economy. Following on from that, various interdisciplinary possibilities for co-operation emerged between the automotive industry and mechanical engineering, production technology, mechatronics, the metal processing industry as well as with the electrical-, textile- and plastic industry. In the high-tech sector many suppliers for the chip-industry and IT-service providers are present with an all-embracing competence in the fields of software development, internet services or the manufacturing of components for the booming information and telecommunication industry. About 2/3 of the Saxon IT-competence with more than 250 companies and 5.000 specialists are concentrated in Southwest Saxony.

The tradition-steeped textile industry went through a fundamental change. Today, the resident textile industry belongs to the most important decision makers in Germany, especially with regard to technological textile engineering.
Technological innovations, i.e. the transfer of new ideas into new products and technological solutions, are said to be the engines of progress and the guarantor for the continuing growth of the region.

In conclusion, it can be said that the market attraction of the location for companies that do business, both nationally and internationally, comes from a healthy mix of innovative medium sized firms, a well qualified work force and a high performing telecommunications and transport infrastructure.

Quality of Life and Leisure Activities
Charming landscapes, an ambitious cultural scene as well as various spare time activities provide an outstanding quality of life in the region. The prosperous Saxon cultural history can be visited in numerous castles, palaces and museums. Theatres, operas and concert halls are moreover offering a diversified cultural life. The outstanding department stores and shopping malls in Chemnitz, designed by the internationally renowned architects Helmut Jahn, Hans Kollhoff and Christoph Ingenhoven, invite people to spend time wandering around this new lively heart of the city.

The Ore Mountains and the Vogtland are just around the corner, and provide the attractions of hiking, skiing and biking, both in summer and winter. In the mountains and the rural areas the famous handcraft and folk art is omnipresent. Furthermore, the region is well known as a Christmas wonderland that attracts, especially in the advent with its Christmas markets and parades of miners, and many tourists from both Germany and overseas.

Figures Southwest Saxony
Area and population:

Chemnitz Administrative Region: 260 inhabitants / km²
Economic region of Chemnitz-Zwickau: 526 inhabitants / km²