This paper reconstructs and examines the growth strategies displayed by the German chemical industry in Spain between 1880 and 1936: exports and direct investment. Elsewhere both became instrumental for the transfer of technology and managerial skills, particularly after World War I. In order to understand why the effects of the first world chemical investor were so poor on the Spanish industry, the German strategies are analyzed in the light of those followed elsewhere. Furthermore, those policies applied both by the Spanish firms and Administration to encourage the rise and development of the local industry are also examined.