Traditional offshoring, in which business activities are outsourced to distant countries with the primary goal of cost efficiency, has long been the primary strategy of globally active companies. The weaknesses of this model have recently become so obvious that a reorientation of production and supply strategies has become unavoidable for companies if they want to remain competitive.

Nearshoring offers an answer to many of these challenges. For Asian companies in particular, nearshoring in Europe means the necessary proximity to important markets, improved supply chain security and the ability to react more quickly to market changes. Nearshoring is also supported by European Union (EU) policy, including the European Chips Act, which promotes the production of chips in the EU to improve the resilience of local supply chains and create new employment opportunities.

Germany as an attractive location

Germany in particular is one of the preferred locations for companies looking to relocate their production to Europe. There are many reasons for this. Not only its central location in Europe, but also its robust economic structure and excellent infrastructure give Germany this status. Technology-oriented companies in particular, which place high demands on their production sites, greatly appreciate these features. Added to this is the availability of a highly qualified workforce.

CTP fulfills special requirements for Quanta as part of the build-to-suit project, for example the implementation of a product test laboratory and customized airlock rooms. © CTP

Dr. Malte-Maria Münchow, spokesperson for the Logistics Real Estate Initiative (Logix) and Head of Purchasing and Sales Specialist Real Estate, Deka Immobilien Investment, emphasizes: "The increasing importance of nearshoring reflects the need to build resilient supply chains that can respond quickly to global challenges. Thanks to its central location and economic stability, Germany offers an ideal basis for ensuring this resilience."

Expertise and reliability in demand

For nearshoring projects to be successful, companies looking to relocate need modern space in strategically favorable locations, preferably with well-developed infrastructure. Project developers of logistics and industrial sites need the appropriate expertise to provide companies with reliable, fast and flexible space. This was also the case for CTP, Europe's largest listed developer, owner and manager of industrial and logistics real estate by gross lettable area (GLA). CTP is currently developing a 22,500 m² high-tech production facility in CTPark Jülich (North Rhine-Westphalia) for Quanta Computer, a leading Taiwanese manufacturer of computers and electronic hardware.

The developer is investing 45 million euros in the development of the project and is fulfilling a number of special requirements for Quanta as part of the build-to-suit project. For example, a product test laboratory and customized airlock rooms will be created. CTP is thus creating the opportunity for Quanta to use state-of-the-art production technologies in a facility specially developed for the company. And in close proximity to its European customers, as the CTPark has an excellent location directly on the borders with Belgium and the Netherlands. It is also easy to reach via the highways from the major European cities of Frankfurt, Brussels and Amsterdam. Alexander Hund, Managing Director CTP Germany, explains: "Germany offers ideal conditions for companies looking to relocate their production capacities to Europe. With its stable infrastructure and skilled workforce, Germany is a key market for technology-oriented Asian companies such as Quanta, which attach great importance to long-term stability and proximity to their customers."

Network of over 1,000 customers

Thanks to long-standing customer relationships and a deep understanding of the specific requirements of high-tech companies, CTP plays a central role in the realization of nearshoring projects for Asian companies in Europe. With a network of over 1,000 customers and a strong presence in Asia, particularly through the Hong Kong office opened in 2023, the developer can provide its Asian customers with optimal support and tailor-made solutions.

Customers from Asia now account for around 10 percent of CTP's portfolio of industrial and logistics space. This includes NIO, among others. The Chinese electric car company was looking for a location for its first production facility for AC systems in Europe. The project developer was able to fulfill the company's wish for a location in Central Eastern Europe with proximity to qualified workers and suppliers at CTPark Budapest West in Hungary. Construction work on the CTPark in Jülich began in July 2024 and is scheduled for completion in the second half of 2025.