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Business & Economy

Magdeburg is an attractive business location for both German and international companies. Well-networked contacts in the city's economic development department work efficiently to support entrepreneurs. Quick approval procedures, extremely well-developed industrial sites at affordable property prices, extensive funding possibilities, optimal transport connections, qualified workers and opportunities to cooperate with scientific and research institutions are just a few of the many highlights that make Magdeburg such an impressive investment location.

Tradition and innovation: mechanical and plant engineering

The field of mechanical and plant engineering is one of the most important industrial sectors in the City of Otto. More than 150 years ago, huge and powerful machine factories were built in Magdeburg by companies such as Gruson, Wolf and Polte. Mechanical engineering also made its mark on the region back in the era of the German Democratic Republic, when Magdeburg was well known as the "city of heavy mechanical engineering" with brands boasting global reputations approximately 100 years after its introduction to the industry. Nowadays, the City of Otto is yet again home to powerful and competitive mechanical engineering companies recording increasing export growth. The mechanical engineering companies based in Magdeburg are represented in both German and international markets with their state-of-the-art technologies and innovative products.

The main focuses of mechanical and plant engineering in Magdeburg include:

-  the construction of facilities for the generation of renewable energies
-  power plant and materials handling technology
-  stranding machines
-  toolmaking, steel construction and special-purpose mechanical engineering
-  engines and engine components
-  automation and control technology
-  facilities for the extraction and processing of oil

Researching and working on a high level: health management

Health management has also become an important economic sector in Magdeburg and the surrounding region, above all in the key areas of medical engineering, pharmaceutical production and brain research. The City of Otto offers companies in the health management sector qualified workers, support from scientific and research institutions and a multitude of cooperation partners. The main focuses of health management in Magdeburg are research into the biological mechanisms of ageing and the development of interdisciplinary approaches towards prevention, diagnosis and therapies for age-related diseases and support for care services.

Always on the go: logistics

Magdeburg’s outstanding motorway and train connections make the capital city of the German federal state of Saxony-Anhalt a central traffic junction for the major cities of Hamburg, Berlin, Hanover, Leipzig and Dresden. With its ideal connections to road, rail and water transport routes, the region has established itself as one of the most important intersections for traffic, logistics and distribution in eastern Germany. Both producers and shippers benefit from the fact that Magdeburg is located in close proximity to procurement and business markets. The city also boasts an ideal location at the crossroads of Europe's north-south and east-west axes that is perfect for the long-distance transportation of goods in inland water vessels, via lorry or via freight train. The Otto von Guericke University and the Magdeburg-Stendal University of Applied Sciences work together with the logistics companies in the city on a multitude of research projects. On top of this, Magdeburg is also home to the Saxony-Anhalt Galileo Test Bed. This development laboratory and test bed for localisation, navigation and communication in transportation and logistics is considered to be one of the most state-of-the-art integration platforms and test environments for applied transportation and logistics research in Germany.

  • The Port of Magdeburg covers the second largest area of any inland port in Germany and has developed into a logistics partner and systems service provider for multimodal transport chains. The port complex is located by the Elbe/Elbe-Havel Canal waterway junction and the A2 and A14 motorways. The low-water lock in the Rothensee junction canal helps to ensure that the Port of Magdeburg maintains a water depth of four metres 365 days a year, irrespective of the varying water levels of the river Elbe. The City of Otto is therefore home to the only port that does not depend on the rise and fall of the water levels on the Middle and Upper Elbe. Ships that dock at the port can make the most of its electricity and renewable energies, while a hybrid locomotive is used to transport goods and merchandise in the port area. Alongside the “GREENPORT Magdeburg”, the site is also home to a number of important logistics companies and logistics-related industries.

  • With a total area of approximately 307 hectares, the Rothensee Industry and Logistics Centre (ILC) in the north of the city is the largest industrial site in Magdeburg and one of the largest logistics centres in Saxony-Anhalt. It is situated at the crossroads of the city's most essential traffic and transportation arteries. More than 30 industrial and logistics companies have been experiencing successful business development in the Rothensee location for many years. The ILC offers investors fully developed building plots with areas ranging from 2000 to 250,000m² that are perfectly designed to attract manufacturers looking to relocate to or establish themselves in the area.

A clean affair: recycling management, environmental technologies and renewable energies

The business areas of renewable energies and energy efficiency offer an economic basis and a broad scientific foundation for development in the Magdeburg region. The same can be said for the field of environmental technology. A number of small and medium-sized enterprises are able and willing to act as cooperation partners and the city is also home to a multitude of partners from science and research thanks to its two universities and many research institutes. One of the largest thermal waste treatment plants with an annual capacity of 650,000 tons is in continuous operation in Magdeburg-Rothensee. In the area of alternative energies, Magdeburg and the region have emerged as an important location for the production of wind power plants.

The main focuses in Magdeburg are:

- the construction and operation of modern wind power plants
- water and recycling management
- biomass utilisation
- fuel cell research
- the waste-to-energy plant in Magdeburg-Rothensee
- the treatment plant for mineral waste and mineral slags

A digital city: the technology-oriented industries

The capital city of Saxony-Anhalt is strongly involved in planning and programming for the digital future and has made a name for itself as a business location for information and communication technology (ICT). The Otto von Guericke University, the Magdeburg-Stendal University of Applied Sciences and a number of further education institutes, research facilities and training centres all help to produce highly capable qualified professionals. Magdeburg's ICT companies, most of which are small and medium-sized enterprises that are successful on an international level, focus their work on the areas of software development, telecommunication services, IT services or hardware production. Such an environment also enables industry giants such as IBM, Regiocom and T-Systems to feel right at home. The City Council offers a multitude of funding opportunities for investors in the business location of Magdeburg, with options ranging from direct investment grants through to staff funding and right through to the subsidisation of research and development projects.

Attractive opportunities: the retail and service industry

The City of Otto boasts an impressive reputation as a modern and attractive retail location that stands out due to its solid purchasing power figures. A number of active renovation measures are currently adding extra value to the city centre and large shopping centres are located both at the heart of the city and on the outskirts of Magdeburg. These are now being joined by an increasing number of smaller shops specialising in niche products. The purchasing power of the city extends far into the region, with Magdeburg making the most of a catchment area that is home to over one million customers. Small and medium-sized companies and service provider start-ups can make use of the outstanding further education and training opportunities available while also benefiting from support packages providing them with the required know-how. The city of Magdeburg helps entrepreneurs to establish a successful market position on a long-term basis by providing them with quick market access and putting them in touch with important contacts.

Ingenious ideas: the cultural and creative industry

The cultural and creative industry has prospered in Magdeburg and is now considered to be an important economic sector that should be taken seriously. 40 percent of sales in this industry in Saxony-Anhalt are now already generated here and the city's contribution towards its economic performance in the federal state as a whole is well above average. Magdeburg's designers are winning awards, its universities are helping people to transform unusual ideas into business foundations and its software developers are making a name for themselves on a global level. International festivals attract visitors to the city's venues by the river Elbe and the City of Otto is also home to designers of fashion presented on German catwalks. Magdeburg's creative powers are especially prevalent in the software/gaming industry thanks to the excellent education and training provided by the Faculty of Computer Science at Otto von Guericke University and the field of industrial design, which gets its young talents from Magdeburg-Stendal University of Applied Sciences. The City of Otto offers outstanding opportunities for creative minds thanks to contacts who are easy to find and more than willing to help, a wide variety of training and further education options, a multitude of locations for exchanging knowledge, affordable business premises and a broad spectrum of funding and support programmes.

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