Build-to-suit for Taiwanese company - Quanta Computer signs for high-tech solution at CTPark Jülich

Caption: The Taiwanese company Quanta Computer, a member of the Fortune Global 500, is moving into a 22,500 m² high-tech production facility at CTPark Jülich in the Brainergy Park in North Rhine-Westphalia. Copyright: CTP.

CTP, Europe's largest listed developer, portfolio holder and manager of industrial and logistics property by lettable area, has signed a contract with Quanta Computer Inc (Quanta; TWSE: 2382.TW), a leading Taiwanese manufacturer of computers and electronic hardware, for a pioneering 22,500 m² high-tech production facility at CTPark Jülich in Brainergy Park in North Rhine-Westphalia. Quanta is thus further expanding its global presence in the manufacture of state-of-the-art technology products for customers in Europe.

The conclusion of the contract is another example of a current nearshoring trend with growing demand from Asian companies. In the context of a changing geopolitical environment and supply chain disruptions following the pandemic, they are looking to expand their manufacturing footprint in Europe. Companies are increasingly looking to build resilient and ESG-compliant supply chains by moving their production capacity closer to their end customers. With this in mind, CTP opened its first office in Asia in August 2023 to be closer to its customers in the region, who are increasingly moving their production facilities to Europe. The focus is on understanding their needs to expand CTP's capabilities as a full-service real estate partner for the provision of high-tech space for semiconductor, electronics and IT companies.

Founded in 1988, Quanta is a Fortune Global 500 company with revenues of around USD 35 billion in fiscal 2023. The new facility at CTPark Jülich will be leased for 15 years and will offer cutting-edge technology with an automated production line and the use of robots. CTP will invest €45 million in the development of the project and will fulfil a number of specific requirements for Quanta in the build-to-suit facility, including a product test lab and bespoke airlock rooms. Construction work is due to start on site in July and be completed in the second half of 2025. CTPark Jülich is located close to the German borders with Belgium and the Netherlands and is easily accessible via the motorways from the major European cities of Frankfurt, Brussels and Amsterdam.

The rapid nearshoring trend in Europe resulted in demand for factory space in the region increasing by 29 per cent in 2022 compared to 2021, mainly due to the rush for space by manufacturers, with Central and Eastern European countries benefiting in particular. Nearshoring is also supported by EU policies, including the European Chips Act, which promotes the production of chips in the EU to improve the resilience of local supply chains and create employment opportunities. The Act is expected to channel €43 billion of public and private investment into chip production in Europe.

Jaromír Černík, Business Development Director for CTP Asia, says: "Since opening our Asian office, we have received an increasing number of enquiries from both new and long-standing Asian customers who are looking to locate part of their operations closer to European markets as nearshoring increases. We have immediate access to a major land bank across Europe, which for us as an owner-developer means that we can create and manage space tailored to the needs of clients such as Quanta Computer on a long-term basis. With a wide range of clients from high-tech industries, we have developed unrivalled expertise in providing space that meets the specific needs of modern technology-driven companies."

Timo Hielscher, Managing Director M&A at CTP Germany, explains: "In Germany, we continue to see tremendous interest from technology-driven Asian companies who are setting up here to reduce risks in their supply chains as well as their carbon footprint. In addition, Germany remains an attractive location due to the availability of highly qualified labour and its robust economic structure, among other things. This is an important reason for us to continue investing in Germany. One example of this is the new business park that we are realising in Mülheim on a brownfield site of around 335,000 m²: The park will provide an ecosystem of over 160,000 m² for research and development, laboratories, shared workspaces and industrial and logistics space for companies in high-growth sectors."

Recent examples of nearshoring by Asian companies in Europe include Jiangsu Xinquan Automotive Trim, a Chinese manufacturer of automotive parts. The globally active Taiwanese semiconductor manufacturer TSMC is also building its first plant in Europe with its factory in Dresden. The plant, in which around EUR 10 billion is being invested, is scheduled to go into operation in 2027. At the end of 2023, Chinese company Topband Smart Europe signed a contract for 11,000 m² of production space at CTPark Timisoara in Romania. The company, which manufactures control systems for power tools, household appliances and BMS, wants to build an important new production facility in the park to better meet customer requirements in Europe and global markets. Chinese automotive supplier KSHG Auto Harness recently leased 13,000 square metres at CTPark Deva II, also in Romania. The supplier intends to rent further space in addition to the 8,000 m² of production space already rented in the CTPark.

Asian customers account for 10 per cent of CTP's portfolio of industrial and logistics space. This includes NIO: the Chinese electric car company was looking for a location for its first production facility for AC systems in Europe. CTP was able to fulfil the company's wish for a location in Central Eastern Europe with proximity to qualified workers and suppliers at CTPark Budapest West in Hungary.

About CTP Germany

CTP is Europe's largest listed owner, developer and manager of logistics and industrial real estate in terms of gross leasable area, with over 11.2 million square metres of GLA in 10 countries as of 30 September 2023. CTP certifies all new buildings to BREEAM Very good or better and has been awarded a "Low-Risk" ESG rating by Sustainalytics, underlining its commitment to sustainability.

Further information can be found on CTP's corporate website: www.ctp.eu

Contact:
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Alexander Hund | +49(0)160 8192724 | alex.hund@ctp.eu
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