Taiwan-Based Quanta Computer Signs With CTP for High-Tech Build-to-Suit Production Facility at CTPark Jülich in Germany

Regulatory News:

CTP, Europe's largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has signed a deal with Quanta Computer Inc. (Quanta; TWSE: 2382.TW), a leading Taiwanese company that manufactures computers and electronic hardware, for a high-tech pioneering 22,500 sqm production facility at CTPark Jülich in the Brainergy Park Jülich in northwest Germany. Quanta is further expanding its global footprint in producing state-of-the-art technology products for clients in Europe.

The deal is further evidence of the ‘nearshoring’ trend that is seeing a growing demand from Asian companies looking to expand their production space in Europe driven by a changing geopolitical environment and post pandemic supply chain disruptions. Organisations are increasingly seeking to build resilient and ESG-compliant supply chains by nearshoring their production capabilities closer to their end customer base. In light of this, CTP opened its first Asian office in August 2023 to be closer to and serve its clients in the region increasingly moving their production space to Europe. The focus is on understanding their needs to build on CTP's capability as a full service property partner delivering high tech space for semiconductor, electronics and IT businesses.

Established in 1988, Quanta is a Fortune Global 500 company and reached a revenue of approximately $35 billion in FY 2023. The new facility at CTPark Jülich will be on a 15-year lease and is set to display cutting edge technology with an automated production line and use of robotics. CTP will invest €45 million to develop the project delivering an array of special requirements for Quanta at the build-to-suit facility, including a product testing lab and bespoke airlocked spaces. Construction is set to begin onsite in July and complete in the second half of 2025. CTPark Jülich is located close to the German borders with Belgium and the Netherlands and is within easy motorway reach of major European cities Frankfurt, Brussels and Amsterdam.

The rocketing nearshoring trend in Europe led to demand for factory space in the region to rise by a staggering 29% in 2022 compared to 2021, mainly driven by a rush for space from manufacturers with CEE countries particularly benefitting. Nearshoring is also being supported with EU policy including The European Chips Act that encourages their production in the EU to enhance the resilience of local supply chains and support employment opportunities. The Act is expected to channel €43bn of public and private investment into the manufacturing of chips in Europe.