Sponsored by: Sponsor Name Presented by: Presenter Name

Sponsored by: Sponsor Name Presented by: Presenter Name

Sponsored by: Presented by: Werner PammingerAnke Merkl

"Innovative Austria: Strategies for US Companies to Conquer the

European Market“ The European and Austrian Plastics Industry and the Austrian Plastics Competence Center Model


The European Plastics Industry (EU27 + Norway + Switzerland)

• 25% of global production

• 2007 production 52.5 million tons (+3%)

• Industry sales (producers, converters and machinery manufacturers) more than USD 400 billion

• more than 1.6 million employees

Source: The Compelling Facts About Plastics 2007,Plastics Europe


World Plastics Production 2007


Plastics Demand by Converters(per Capita per Region)


Converter Demand per Polymer and Application

2007:

Growth rates between 0.5 and 7.5%

Average growth rate: 3%


Demand by Converters (by End Use Segment)


Trends in the European Industry• Automotive suppliers and plastic machinery industry hit hardest• For converters: Resin prices back to „reasonable“ levels• Europe remains technology powerhouse• Central Eastern Europe: Further growth despite economic

downturn• Further diversification of markets towards High End vs. Low

Cost• Core recommendation for SMEs:

Cover market niches – and cover them globally!


NORTH SEA

ATLANTIC OCEAN

MEDITERRANEAN SEA

Denmark

Finland

Poland

France

Germany

Spain

Portugal

Greece

ItalyTurkey

Switzerland

Austria

CzechRepublic

Estonia

Latvia

Lithuania

Belarus

Ukraine

RomaniaHungary

Slovakia Moldova

Bulgaria

Russia

Ireland

Great Britain

Monte-negro

Serbia

Slovenia

CroatiaBosnia/Herze-govina

Mace-donia

Albania

Norway

Nether-lands

BelgiumLuxembourg

Malta

Austria in the Heart of Europe


The Austrian Plastics Industry

• 740 plastics companies• 65,000 employees• Total sales: USD 17.5 billion• Industry growth of 7-8% annually above growth

in other sectors • Small Austrian domestic market;

very internationally oriented: Export quota 73%• Austrian plastics industry =

Model for all of Europe


European Plastics Regions in Comparison

North Rhine-Westphalia

Switzer-land

Upper Austria

Austria

Total population (in millions) 18 7.5 1.4 8.2

Total employees (in millions) 8 4 0.7 3.8

Employees in plastics industry 85,000 33,000 33,400 65,000

Employees in plastics industry (in % of total employees) 1% 1% 5% 2%

Plastics industry sales (in USD) - 7 billion 9.5 billion 17.5 billion

Number of plastics companies 1,000 850 220 740


Upper Austria is Austria‘s main industry hubfor production, technology and exports:

14% of Austrian area (4,630 sq miles = Connecticut) 17% of Austrian population (1.4 million = Idaho)25% of Austrian industrial production 27% of Austrian exports

Upper Austria


Raw materials/Recycling Traders

Suppliers of plastics-related services

The Austrian Competence Center for thePlastics Industry: The Austrian Plastics Cluster

16640

71

4928

56

Total:410 partners

Polymer Processing

Machinery

Tooling/MoldConstruction

Technology Transfer Institutes


Participation of the provinces(423 partners)

Germany 31Switzerland 2Liechtenstein 1USA 1

Vorarlberg2 Tyrol

4Burgenland

4

Carinthia12

Salzburg25

Lower Austria79

Styria17

Upper Austria180 Vienna

38

Since 2005: Joint-operation with the State of Lower AustriaSince 2008: Joint-operation with the State of Salzburg

http://www.ecoplus.at/


Incorporating the Entire Value Chain(Partner ranking according to sales)

Raw materials/Recycling traders

Polymer Processing

Machinery

Tooling/MoldConstruction

Suppliers of plastics- related services

Technology Transfer Institutes


WPC Competence Centerin Austria

• 66,000 t total market volume for wood-plastic composites in Europe (EU 25 + Norway) in 2007

• 35 % annual growth rates since 2003

• Market volume is expected to double by 2010

• Two thirds of extruded WPC is used for decking in the European market

• WPC has also a place in building construction for both out-door and indoor applications

Source: Cincinnati Extrusion GmbH, Press Release December 2008


Services Offered by the Austrian Plastics Cluster for Network Partners

Information andCommunication

Marketing & PR

Internationalization

Cooperation

QualificationKnowledge transferRegular specialized events; 165 events with 9,025 participants in 2008

Supporting companies as they enter new marketsExport collaborations, EU co-funded projects, introduction of relevant foreign markets

Initiating and supporting collaborative projects92 cooperation projects with 396 partners

Information platform for increased successregular company visits and interviews, databases, monthly newsletters, company directories, etc.

Positioning of members at home and abroadTechnology presentations, image of the industry, trade fairs


Permanentcollaborations

Events

Cooperative projects

Informationplatform

„Innovation through Cooperation" - Austria‘s Cooperation Model

Company visits, newsletters, databases, print media, etc.

Symposiums,workshops,study trips,meetings, etc.

Government-funded projects, EU projects, exchange of experiences, etc.

Project management, conflict management, etc.

Process consulting


210 Companies Cooperate in 93 Projects

Areas of Cooperation

Total value of all 93 projects:

USD 24 million

Technology- RTM-bracket development - Technology and product development of bodywork parts

Organization- Reengineering injection molding, tooling, design - Benchmarking in injection molding and tool engineering- Benchmarking in tool and form making for SMEs

Qualification- ‘Innviertel‘ training- Kaizen method


Best Practice Example of Cooperative Projects • Project:

Design & development & production of car body panels in plastics

• Partners: Rosenbauer International, ProfitLogistics, Senova Kunststoffe

• Process:- Partners worked together and contributed plastics know-how- Analysis of components regarding functionality and cost - Design and production of prototypes - Start of mass production

• Results: - Implementation of the thermoforming process for the production of car

body panels of fire engines - Cost savings while increasing functionality - Knowledge/innovation gain for all partners

New system including the blue light housing and mounting of the lamp


10 years of Experience in Cooperative Projects

• 77% of the companies continue working together with their project partners after official project end(e.g. as customers, suppliers, joint venture partners)

• “Cluster support major contribution to positive outcome” (in 89% of all projects)

• Cluster partners experience higher growth rates than non-cluster partners (+8% p.a.)

• Cluster partners create more jobs than non-cluster partners


Austrian Plastics Industry Connected with Academic and Research Institutions

Plastics Industry

INNOVATION

Plastics Cluster

(KC)

TransferCenter

for Plastics Technology

(TCKT)

JKU -University of

Linz4 institutes

polymer chemistry + 4 new institutes

plastics technology

Upper Austria University of

Applied Sciences

Materials and Process

Technology

Innovation


Austrian Innovation:

You can be a part of Europe’s most innovative plastics region!


Market Access to 70 million Customers in Central Eastern and Southeastern Europe

• Germany (82 million)• GDP: + 1.9 %

Czech Republic (10.3 million) GDP: +4,0 %

Slovakia (7.3 million) GDP : +5.4 %

Hungary (10 million)GDP : +1.9 %

Italy (58 million) GDP: + 1.2 %

Slovenia (2 million) GPD: +4.2%

Croatia (4.4 million) GDP: +3.7%

Romania (21 million)GDP : + 8.6 %

Bulgaria (7.5 million)GDP : + 6.2 %

Poland (38 million)GDP: +5.2 %

Vienna

Austria (8.2 million) GDP: +2.5%

Sources: Invest in Austria – ABAStatistik Österreich

3 hours by carAustria• Population: 8.2 million • GDP growth 2008: 1.8%• GDP/capita 2008:

€ 33.820• Inflation rate 2008: 3.2%• Distribution of GDP:

Agriculture: 1%Industry: 31%Services: 68%

• More than 300 international companies have their CEE headquarters in Austria


Cash Incentives / Low-interest Loans for Your Investment in Austria

Austria especially interested in: New technologies / innovative projects R&D Education Environmental protection Exports and internationalization Higher subsidies for SME


Investor-Friendly Tax System

Corporate taxation: 25% of profits• Special group taxation for corporations

• Attractive tax exemptions for R&D: 40-60%

• Double taxation treaty with the United States

• Specific investor incentives


Highly Productive Employees

55,82

48,48

46,02

44,28

41,51

40,69

39,87

37,68

34,34

31,60

26,23

24,59

21,19

60,78Luxemburg 1

Norway 2

France 3

USA 6

Austria 8

Netherlands 10

Italy 12

Germany 14

UK 17

Switzerland 21

Japan 23

Czech Rep. 27

Hungary 28

Poland 33

Source: World Competitiveness Yearbook 2008

GDP per employee and working hour, in US$


Enjoy the Highest Quality of Life

Source: World Competitiveness Yearbook 2008

Scale: 1-10


Strategy „Innovative Upper Austria 2010“

Strategic Program “Innovative Upper Austria 2010”(2005-2010, 2nd initiative)

250 key stakeholders involved (economists, trade unions, companies, scientists, politicians)

5 strategic areas identified

Business and Technology Location Upper Austria

European Union Networking

R&D Professional Qualification

Industry Competence Centers

43 measures defined

Total budget: USD 780 million

R&D expenses for companies participating in R&D programs are matched by the Austrian government and the European Union


Technology and Marketing Company of Upper Austria - What we can do for you …

Consultancy and service – Fast, unbureaucratic and free of charge

Practical support in the start-up phase

Identifying and locating business sites

Advice on subsidies and financing sources

Advice on tax issues / labor regulations

Facilitation of approvals and formalities

Establishing all necessary contacts

Organization of site visits

www.tmg.at

http://www.tmg.at/


Contact Information

Werner PammingerCluster Manager Plastics Cluster / CEO Clusterland Oberösterreich GmbH

Phone: 011 43 732 79810-5115Fax: 011 43 732 79810-5110kunststoffstandort@clusterland.atwww.kunststoffstandort.at

Clusterland Oberösterreich GmbH supports cluster and network initiatives. It promotes innovation through cooperation and competence in order to enhance the competitiveness of enterprises.

Anke MerklProject Manager Plastics Location Upper Austria / OÖ. Technologie- und Marketing GmbH

Phone: 011 43 732 79810-5048Fax: 011 43 732 [email protected] TMG Group has two main objectives for the region of Upper Austria: Firstly the promotion and support of innovation - particularly through applied research and technology transfer. Secondly, regional and business development and corporate investment.

All rights reserved, especially the rights to copy, to distribute or to translate. No part of the slides may be reproduced, copied or distributed in any form or by any means without prior written permission of Clusterland OÖ GmbH and/or OÖ. Technologie- und Marketing GmbH.

mailto:[email protected]

http://www.kunststoffstandort.at/

mailto:[email protected]

http://www.kunststoffstandort.at/

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