Chinese Automotive Firm Signs Circa 18,000 sqm With CTP in Slovakia as Nearshoring Gathers Pace
29 July 2024 - 3:00PM
Business Wire
Regulatory News:
CTP, Europe's largest listed developer, owner, and manager of
industrial and logistics properties by gross lettable area (GLA),
has leased circa 18,000 sqm of industrial and logistics space in
Slovakia to Jiangsu Xinquan Automotive Trim, a Chinese company
producing interior parts for the automotive sector.
Jiangsu Xinquan is leasing 17,486 sqm at CTPark Prešov South,
combining both warehouse and office space. CTPark Prešov South is
strategically located in Slovakia’s third-largest city, with
excellent motorway connection to Košice (40km) and the automotive
cluster in Žilina /Martin (200km), and easy access to Poland
(70km). The Prešov region benefits from a highly skilled workforce,
competitive labour costs, a diversified local economy with a strong
industrial heritage and the highest available level of state aid.
The region of Eastern Slovakia has witnessed substantial foreign
direct investment, highlighting the area's economic potential.
One of China’s leading total solution providers for automotive
trim parts, this will be Jiangsu Xinquan Automotive Trim’s first
plant in Europe, in the latest evidence of the nearshoring trend
where multinationals are increasingly basing their manufacturing
closer to where their customers are located, in response to global
supply chain disruptions and a shifting geopolitical backdrop.
The CEE region, in particular Slovakia, Czechia, and Hungary,
has firmly established itself as a highly efficient automotive
manufacturing hub worldwide, and surpassed Germany in nominal car
production in 2022. Asian companies (mostly from China, Japan, and
Korea) are part of this trend, having been steadily investing in
the CEE region since the 2000s, and their investment is set to
increase further given that Europe has emerged as a pivotal
component of China's worldwide expansion in the electric vehicle
sector.
Ivan Pastier, Business Development Director for Slovakia at
CTP, said: “Given Slovakia’s historic popularity with the
automotive sector, it is unsurprising that Jiangsu Xinquan
Automotive Trim has chosen CTPark Prešov South as its first
European plant. This deal demonstrates not only how the automotive
sector is driving industry in the CEE region, but also how popular
CEE is becoming for multinationals who want to base their
manufacturing in Europe, thanks to its strategic location,
developed transport infrastructure, and well-educated workforce. A
significant part of our Slovakian portfolio is occupied by
automotive tenants, and we expect this number to increase further
as automotive companies and Asian manufacturers continue to shift
car production to CEE countries due to the nearshoring trend.
"Having invested in our land bank in Slovakia several years ago,
we are now seeing the benefits of this investment, with new
nearshoring clients enabling the expansion of our parks across the
region. We look forward to welcoming Jiangsu Xinquan Automotive
Trim to the thriving business ecosystem we are creating at CTPark
Prešov South, where companies can collaborate and grow together,
helping to boost the local economy. Strong demand from our Asian
clients led us to opening CTP's first Asian office in Hong Kong
last year, enabling us to be closer to them and better understand
their needs as they shift more production to Europe."
Mr Tang Zhihua, Chairman of the Board and General Manager at
Jiangsu Xinquan Automotive Trim, commented: “We are looking
forward to opening our first factory in Europe with CTP in Slovakia
and CTPark Prešov South offers a strategic location with
exceptional connectivity. The facilities provided at CTPark Prešov
South will allow us to efficiently manufacture our products in a
location that is closer to our end users.”
The east of Slovakia is a location where CTP invested in
speculative land purchases several years ago. As a result, it is
now ready to respond to the growing demand for industrial real
estate in the area, driven by a combination of factors such as
nearshoring and rapidly expanding economies in the CEE region. CTP
owns and operates three parks in eastern Slovakia - CTPark Prešov
South, CTPark Prešov North and CTPark Košice.
CTP is the market leading developer of industrial and logistics
properties in Slovakia, with 803,000 sqm of GLA across 14 parks.
Since its integration into the European Union in 2004 and the
Eurozone in 2009, Slovakia’s growth has accelerated rapidly. An
advantageous location in the heart of Central Europe and tax
incentives for foreign investors have contributed greatly to the
country’s economic success, particularly in recent years: FDI
inflows more than doubled between 2018 and 2019. Slovakia’s capital
city, Bratislava, sits on the borders of Hungary and Austria just
65 kilometres from Vienna, offering unparalleled proximity to
millions of consumers in Europe’s west, east, and south.
ABOUT CTP
CTP is the largest listed owner, developer and manager of
logistics and industrial real estate in terms of gross leasable
area, with 12.0 million sq.m. GLA in 10 countries (as of 31 March
2024). The company certifies all new buildings to BREEAM at a level
of ‘very good’ or above and has achieved a low-risk ESG rating from
Sustainalytics, reaffirming its commitment to sustainability. For
more information, please visit: www.ctp.eu.
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