Düsseldorf’s diverse industries allow sustainability to thrive, attracting Asian firms
- Ranked as one of the top cities for foreign direct investment, Düsseldorf regularly witnesses success stories from international players that have established offices in the city
Country Business Reports interviews and articles by Discovery Reports
It is a beautiful day in the City of Düsseldorf. At one of its flagship shopping and business districts known as Königsallee, companies and retailers are opening up. The chestnut- and sycamore-tree-lined road welcomes visitors as they walk past the eye-catching Kö-Bogen office and retail complex. The pleasant stroll extends all the way to the Hofgarten (Court Garden) where ducks and swans can be seen swimming around the city moat.
The Covid-19 pandemic has no doubt affected many lives and livelihoods all over the world, but the lights and bustling activities streaming through Düsseldorf’s peculiar restored houses, fountains, bridges and ornate railings show that the virus has failed to dampen hope, and the spirit of progress and development persists.
Centrally located on the European continent, Düsseldorf is a renowned business hub in the heart of Europe where traditional global players share spaces with agile start-ups. Thanks to its moderate living costs and excellent lifestyle offerings, Düsseldorf has attracted many international companies from Asia, North America and beyond.
Business works at Düsseldorf
Ranked as one of the top cities for foreign direct investment (FDI), Düsseldorf regularly witnesses success stories from international players that have established offices in the city. In the field of information technology (IT), for instance, Indian multinational company Infosys set up its innovation centre in Düsseldorf, employing 300 staff that cater to various industries. The IT consultancy and outsourcing company Wipro also opened the first cloud campus in Düsseldorf.
South Korean life science players, such as diagnostics company Seegene, have also found a home in the city. Düsseldorf’s life science cluster comprises almost 80 core biotechnology businesses and numerous specialised service providers and suppliers.
Planting their footprint in Düsseldorf, large telecommunications players from mainland China are contributing to the deployment of 5G networks, more so at the height of the Covid-19 pandemic. Düsseldorf is Germany’s hotbed for telecommunications. About 1,700 companies in the information and communications sector are located in Düsseldorf, employing close to 30,600 people.
Soon, membership data and artificial intelligence services provider Rakuten from Japan will join Düsseldorf’s mobile community.
“Something we have proven in the past is that we are truly an ideal gateway to the European and German markets,” says Theresa Winkels, director. “Since we are centrally located, densely populated, and with various means of transport including an international airport, it is very convenient, efficient and cost-effective to run a European head office from Düsseldorf.”
Thanks to the city government’s pro-business policies, entrepreneurship is highly encouraged. Combined with efficient infrastructure and a secure environment, Düsseldorf has become one of the most popular European destinations for FDIs.
With an extensive talent pool, the city of Düsseldorf supports foreign players in finding the appropriate office, warehouse, property or laboratory space. It also provides platforms and networking opportunities that promote synergies and acts as a one-stop agency for companies establishing a foothold in Germany.
“Finding and hiring the right talent is crucial in any company,” Winkels says. “One cannot run a company in Europe successfully if it does not have access to a large pool of local talent. Düsseldorf is located right in the middle of the densest university landscape in Europe.”
The city also supports companies in gaining access to European markets as it is well-versed in traditional and digital marketing.
“Düsseldorf has a special function in the field of distribution, sales and marketing,” says Annette Klerks, deputy director. “Asian companies entering the European market regardless of the industry opt to establish their European headquarters here.”
Being strong in many industries also makes the local economy more resilient during crises. To organise the recovery of the economy post-Covid, the city supported Asian companies from China, Japan, India and South Korea during the pandemic. From staff transfers, medical support to local administration, the city government’s staff are very much at the service of their clients.
Diversity and cultural programmes that welcome all
With citizens from around 180 nations living in Düsseldorf, there is never a dull moment as young and old discover and learn from different cultures. Co-existence is imperative, so the state capital organises various events and campaigns that stand for internationality and diversity. There is also an activity for every preference – whether it is going to family-friendly parks and gardens; sampling culinary delights at any of the city’s bars and restaurants such as the Altstadt, known as the longest bar in the world; or visiting the mostly free-entry museums and art galleries.
“Citizens of the greater Düsseldorf region are very welcoming, and this openness is supported by the government and institutional services,” Klerks says. “The International Business Service of the City of Düsseldorf, for instance, caters to the needs of international companies. We do this in many languages including Chinese and Japanese. We can connect since we understand the business culture and the local economy. We support these companies in setting up not just their offices, but also their people – the managers, employees and their families.”
Asian families find the Düsseldorf lifestyle appealing because they get all the perks of living in a global metropolitan environment while relishing the vibe of a close-knit village since the area is still relatively small.
Apart from the sensible urban planning, projects that are increasingly becoming visible in Düsseldorf deal with research and development (R&D) initiatives in the areas of green technology, life sciences and industrial internet of things.
Foreign companies are establishing their R&D centres in Düsseldorf to work closely with European companies. An example is Japanese chemical company Asahi Kasei that set up its R&D centre in Düsseldorf to work with automotive suppliers in the region. Taiwanese fabless semiconductor company MediaTek also set up shop in the city to develop chip designs for smart televisions and phones with European counterparts.
“Today, we have a high demand from Asian companies wanting to set up R&D centres here to benefit from the Green Deal policy of the European Union,” Klerks says. “These companies seek to jointly develop solutions with European and German partners.”
Advancing growth and sustainability
Businesses see Düsseldorf as crisis-resistant due to the diverse industries present in the city that give it a high degree of stability. Amid the Covid-19 pandemic, FDI still increased and is poised to continue to grow.
“A lot of the Asian companies, to some extent, were the beneficiaries of the lockdown because the technological products they make are the items that are in demand,” Klerks says.
Apart from the varying industries, a key factor in Düsseldorf’s continued success is the comprehensive support and tailored advice provided by the government to international companies through the Office of the Economic Development (OED). From the settlement and company formation up until the adjustment and development phases, businesses have access to information and consultancy services in 10 languages including English, Mandarin, Japanese, French and Russian.
Several international business services are readily available. For decades now, Düsseldorf has been one of the key locations for Japanese firms in continental Europe, and the city manages a desk catering to the special needs of Japanese investors. The Japan Desk connects firms to institutions such as the Japanese Chamber of Industry and Commerce, the General Consulate and the Japanese Club.
The OED also opened the Düsseldorf China Competence Center (CKD), which deals with the ongoing development of the city’s Chinese infrastructure apart from supporting new Chinese companies and maintaining existing ones. The CKD is a joint-venture project together with the Düsseldorf Chamber of Industry and Commerce and the Messe Düsseldorf.
Shortly before Covid-19 hit, the city also finalised cooperation talks with Indian investors and will be expanding its services to better support Indian companies.
As a creativity enabler, the OED initiated the KomKuk or the Competence Center for Cultural and Creative Industries. Acting as an ambassador for Düsseldorf’s creative class, KomKuk assists, coaches and guides entrepreneurs from the advertising, design, film, music, literature, arts, gaming and fashion navigate the administration jungle.
Committed to sustainability through environmental policies and pursuits, Düsseldorf aims to become carbon-neutral while supporting companies looking to expand their businesses through sustainable practices. As a flagship programme, the city is in close coordination with groups in Asia to advance innovations in the field of autonomous driving and the medical sector.
“We invite companies to put Düsseldorf to a test. They will find an excellent location for business, living and pleasure,” Winkels says.
A true gateway to Europe, Düsseldorf remains a choice destination and attractive investment hub for visitors and companies worldwide.