CropEnergies secures jobs and income

The study shows the economic importance of the bioethanol plant in Zeitz for Germany as a business location, especially in rural areas. Aside from direct effects, indirect and induced economic effects were also taken into consideration. These effects are felt in industry sectors which are upstream and downstream of the production along the value added chain. Thus, additional jobs are created at raw material suppliers, regional suppliers and service firms, for example.
More jobs and income
CropEnergies is a leading producer of sustainably produced bioethanol. The plant in Zeitz alone - with an annual capacity of 360,000 cubic meters of bioethanol one of the largest plants in the European bioethanol market - has 115 direct employees. Added to that, as the study has shown, are approximately 2,300 jobs in upstream and downstream industries. This high number is the result of the fact that much of the input comes out of the agricultural sector. Employment effects are particularly significant there. Especially for the long term security of income, the bioethanol production of the CropEnergies Bioethanol GmbH is of great importance.
However, not only the employment figures show a particularly positive development, but the salaries per employee are above average at CropEnergies as well, compared to the manufacturing industry. The labour productivity is well above average with a value added of approximately EUR 447,000 per employee. It exceeds the average figures of the production industry "Manufacture of coke and refined petroleum products" by over 200 percent.
Value added on par with oil and coal
The gross value added shows clearly the role the bioethanol production plays for the region. The examined plant in Zeitz realized EUR 51 million of gross value directly as well as an additional EUR 96 million through indirect and induced effects on other production industries. The sum of value added effects is EUR 147 million. This adds up to a so-called value added multiplier of 2.9. The bioethanol production is therefore economically on par with oil and coal (value added multiplier: 2.8).
Profitable investments
To remain competitive, CropEnergies Bioethanol GmbH's investments in the bioethanol production are above average. This not only pays off for the company and the environment. The production also provides tax revenues at a federal, state and municipal level. In the last four financial years, the company in Zeitz has paid approximately EUR 92 million directly. Indirect and induced payments are added to that. Thus, every euro in taxes and social security paid by CropEnergies generates an additional income of EUR 1.30 for the public purse.
Sustainable and efficient
In Zeitz, wheat, maize and barley, among others, are used for the production of bioethanol. The plant is situated in the middle of one of the largest wheat growing regions in Germany. This means short transport distances for the raw material supply. Valuable components of the raw materials such as proteins, fats or fibres, which cannot be converted into bioethanol, are used for the production of high-quality animal feed. It is thanks to the extremely efficient and sustainable way of production that bioethanol made in Zeitz exceeds the sustainability criteria of the EU which demand greenhouse gas savings of at least 35 percent compared to fossil fuels.
The full study can be downloaded from www.wifor.de/aktuelles/cropenergies.html (only available in German).