Nearshoring momentum grows as CTP signs 19,000 sqm deal with Chinese manufacturer in Serbia

CTP has signed a lease agreement with Shanghai Huizhong Automotive Manufacturing Co. Ltd. (SHAC), a prominent Chinese supplier of automotive parts and systems. The deal includes 19,000 sqm of warehouse and office space at CTPark Novi Sad East in Serbia.

Located in northern Serbia, CTPark Novi Sad East offers strategic advantages with its proximity to the European Union border (just 100 kilometers away) and Belgrade (90 kilometers to the northwest). Its direct access to the international railway network and the A1 highway enhances connectivity, making it an ideal hub for cross-border business operations. Novi Sad, recognized as an industrial and financial center, provides an optimal base for SHAC to efficiently serve the European market.

This site will host SHAC’s first European manufacturing facility, marking a significant step in the company’s global expansion strategy. The facility will initially focus on producing chassis components for BMW, with construction of Phase I slated to begin in February 2025. Operations are expected to commence by December 2025. The first phase encompasses 19,000 sqm, with room for future expansion to 30,000 sqm.

SHAC’s investment underscores the increasing trend of nearshoring, as multinational companies move production closer to their key markets to mitigate supply chain disruptions and adapt to shifting geopolitical dynamics. Nearshoring reduces logistical complexities, shortens supply chains, and enhances access to European customers.

Petar Kolognat, Business Development Director at CTP, emphasized the significance of the deal:
“With an increasing number of Asian companies expanding in Central and Eastern Europe, we are proud to support SHAC as they establish their first European manufacturing facility. This highlights the growing appeal of the region for global manufacturers, particularly Asian companies, which accounted for 20% of our leases in 2024. Demand across industries remains robust, and we expect the nearshoring trend to accelerate.”

Gong Min, Deputy General Manager at SHAC, commented on the milestone: “We are thrilled to establish our first manufacturing facility in Europe at CTPark Novi Sad East. The site’s strategic location and excellent connectivity to regional markets allow us to enhance our production capabilities and deliver products efficiently to our OEM customers. This facility will serve as a cornerstone for our growth and expansion in the region.”