The Free State of Saxony : Germany

Industrial center of the east.

With approximately 250 inhabitants per square kilometer, Saxony is the most populous of the new federal states. It is a state with a long industrial tradition: Prior to the Second World War, the triangle formed by the cities of Dresden, Leipzig and Chemnitz was the industrial heart of Germany. Leipzig (471,000 inhabitants) was one of the main centers of peaceful resistance to the regime of the former GDR. After unification, a great many industrial firms were unable to compete and were shut down.

Today, however, the Leipzig/Halle economic region is experiencing a strong upswing in the commercial and services sectors. Many banks have opened branches in Leipzig, and the city is well on its way to becoming one of Germany’s most important financial centers after Frankfurt am Main and Dusseldorf. Siemens AG is building a high-performance and innovation center for microelectronics in Dresden; Volkswagen AG is manufacturing cars in Mosel near Zwickau (103,000 inhabitants) and automobile engines in Chemnitz. Foron AG in Scharfenstein was awarded the Federal Environmental Prize in 1993 for the development of the first CFC-free refrigerator. The Ore Mountains, the Vogtland and Upper Lusatia carry on their traditional toy and textile industries.