Subsidiaries of foreign businesses successful in Germany

In the year 2006 about twenty percent of the total value added generated in Germany was created by businesses the mother companies of which have their headquarters outside Germany. Among industrial businesses (leaving aside the insurance and financial industry) about 20,000 companies in Germany were controlled by non-German businesses in the year 2006. Even though these businesses accounted for only 1% of all industrial businesses (without finance industry) they nevertheless generated 14% of gross value added in Germany. These figures were established by the Federal Statistical Office.

In some branches of industry the majority of value added was even generated by businesses under foreign control: tobacco processing businesses under foreign control generated 91% of value added. With regard to the mineral oil processing industry this figure amounted to 83% and for the vehicle construction industry which comprises for instance shipbuilding, rail vehicle building as well as aviation and space industries to 59%. In the industry producing equipment for data processing, foreign businesses generated 52% of value added in Germany in the year 2006.

73% of businesses in Germany under foreign controll have their headquarters in Europe, 58% in the European Union. Companies with headquarters in the USA generated 24% of value added generated by businesses under foreign control, those in the Netherlands 14% and those with headquarters in Great Britain 12%.

The study called “Verflechtung deutscher Unternehmen mit dem Ausland“ is available for free-of-charge download. GERMAN