Chinese automotive firm secures 18,000 sqm lease with CTP in Slovakia

CTP has announced a significant lease agreement with Jiangsu Xinquan Automotive Trim. The Chinese automotive company, known for producing interior parts, will occupy approximately 18,000 sqm of industrial and logistics space in Slovakia.

Jiangsu Xinquan has leased 17,486 sqm at CTPark Prešov South, a strategic location in Slovakia’s third-largest city, Prešov. The site offers excellent motorway connections to Košice (40km), the automotive cluster in Žilina/Martin (200km), and easy access to Poland (70km). The Prešov region is noted for its highly skilled workforce, competitive labor costs, diversified economy with a robust industrial heritage, and the highest available level of state aid. Eastern Slovakia’s substantial foreign direct investment underscores the region’s economic potential.

This development marks Jiangsu Xinquan Automotive Trim’s first European plant, reflecting the ongoing trend of nearshoring, where multinationals are moving manufacturing closer to their customer base in response to global supply chain disruptions and shifting geopolitical landscapes.

The Central and Eastern European (CEE) region, particularly Slovakia, Czechia, and Hungary, has emerged as a highly efficient automotive manufacturing hub, surpassing Germany in nominal car production in 2022. Asian companies, primarily from China, Japan, and Korea, have been investing steadily in the CEE region since the 2000s, with Europe becoming a crucial component of China’s global expansion in the electric vehicle sector.

Ivan Pastier, Business Development Director for Slovakia at CTP, commented on the deal, stating, “Given Slovakia’s historic popularity with the automotive sector, it is unsurprising that Jiangsu Xinquan Automotive Trim has chosen CTPark Prešov South for its first European plant. This deal not only underscores the automotive sector’s influence in the CEE region but also highlights the increasing appeal of the CEE for multinationals looking to base their manufacturing in Europe, thanks to its strategic location, developed transport infrastructure, and well-educated workforce. A significant portion of our Slovakian portfolio is occupied by automotive tenants, and we anticipate further growth as more companies shift production to CEE countries due to nearshoring.”

Pastier also noted the benefits of CTP’s early investment in Slovakian land, which is now paying off with new nearshoring clients and the expansion of their parks across the region. “We look forward to welcoming Jiangsu Xinquan Automotive Trim to the thriving business ecosystem at CTPark Prešov South, where companies can collaborate and grow together, boosting the local economy. Strong demand from our Asian clients led us to open CTP’s first Asian office in Hong Kong last year, enabling us to better understand their needs as they increase production in Europe.”

Tang Zhihua, Chairman of the Board and General Manager at Jiangsu Xinquan Automotive Trim, expressed optimism about the new venture: “We are excited to open our first factory in Europe with CTP in Slovakia. CTPark Prešov South offers a strategic location with exceptional connectivity. The facilities will allow us to efficiently manufacture our products closer to our end users.”

CTP’s strategic land purchases in eastern Slovakia have positioned the company to meet the growing demand for industrial real estate driven by nearshoring and the rapid economic expansion in the CEE region. CTP owns and operates three parks in eastern Slovakia: CTPark Prešov South, CTPark Prešov North, and CTPark Košice.

As the leading developer of industrial and logistics properties in Slovakia, CTP boasts 803,000 sqm of GLA across 14 parks. Slovakia’s advantageous location in Central Europe and favorable tax incentives have significantly contributed to its economic success, particularly following its integration into the European Union in 2004 and the Eurozone in 2009. The capital city, Bratislava, is strategically positioned on the borders of Hungary and Austria, just 65 kilometers from Vienna, offering unparalleled access to millions of consumers across Europe.