August 2018

Investment Special Focus

Interview with Robin Zeng, CEO of CATL, and Thuringian Economics Minister Wolfgang Tiefensee are signing the joint project agreement in the presence of Chancellor and China‘s Prime Minister Li Keqiang. Photo: Federal Government / Jesco Denzel Dr. Arnulf Wulff Senior Vice President Investment, International Business and CATL is building a gigafactory in Thuringia Cluster Promotion, LEG Thüringen

A major success for the investment location Thuringia: The Chinese company LEG Thüringen has landed a major coup Contemporary Amperex Technology Ltd. (CATL), one of the leading car battery producers with the construction of a battery cell worldwide, is building its first factory outside of China in Arnstadt, south of the state’s factory by the Chinese investor. capital of Erfurt. Indeed, this means the go-ahead for one of the most important foreign CATL will invest 240 million euros and first ever European production location investment projects in Thuringia in the create 600 new jobs by 2022. With a capa- for battery cells is emerging,” explains past ten years. At the same time, it is city of 14 gigawatt hours, the focus of the Wolfgang Tiefensee, Thuringia’s Minister also a result of our committed work in factory will be on automated production for Economic Affairs, who himself led the recent months to assert ourselves in and intelligent manufacturing of batteries. negotiations in China, at the signing of the the increasing national and interna- In addition to production, research and project agreement in the Federal Chancel- tional competition between regions. development, quality control and high- lery in Berlin at the beginning of July. “We However, the actual work for a step-by- quality services will play a major role. are glad that a world market leader like step implementation has just begun. CATL is relying on Thuringia to accelera- The central location of Thuringia, the good te growth of its battery and production Has the business location Thuringia infrastructure at the site, the investor ser- technology from here.” CATL will establish become more interesting for investors vice, the availability of qualified experts its production plant in the “Erfurter Kreuz” in recent years? and the multiple research capacities are industrial park, which has been success- Yes, recently the share of foreign among the trump cards which convinced fully developed by the State Development investors, especially from the high-tech CATL and tipped the balance in the tough Corporation of Thuringia (LEG) since 2005. sectors, that are interested in the Free worldwide competition between regions. LEG is energetically supporting the invest- State has been increasing continuously “This significant investment decision ment project with its competent investor and now amounts to over 50%. Hence, catapults our state into the European service. (hw) a peak has been reached; at the same league at least, since here is where the time this proves the increasing appeal of the business and technology location of Thuringia.

Where do you see the reasons for this development of Thuringia as a hot spot for investors? For one thing, Thuringia has a diver- sified industrial structure, qualified employees, and renowned higher education and science institutions; it offers high quality of life, in addition to its excellent position in and Europe and state-of-the-art infrastruc- Groundbreaking ceremony at Bell’s site in the industrial area ture. The availability of attractive indus- Eisenach-Kindel with State Secretary Valentina Kerst. Photo: Bell / Thorsten Block trial spaces that meet even the most challenging requirements especially plays a major role. Bell Equipment is setting the course for the On the other hand, LEG Thüringen, as a full-service agency, offers compa- future in Thuringia tible services for investors, reaching from economic and sector analyses, The South African construction machinery producer Bell Equipment is expanding at tailor-made location offers right up to the Kindel location near Eisenach and investing around 13 million euros. The project financing and subsidy packages, public will create 135 new jobs in the middle term. authority liaison and finding coope- ration or research and development At the end of July began with the sym- steel bodies for the transport vehicles, partners in Thuringia. At the same time, bolic first groundbreaking ceremony the which until recently were delivered from LEG Thüringen also supplies especially major investment including the con- South Africa. The Free State of Thuringia suitable industrial locations, all under struction of new factory buildings, a is supporting the project with 1.4 million one umbrella! (kut) modern office and staff facilities euros. building, as well as equipment for the The company announced: “Our project Canadian company invests industrial facilities. In the future, sub- is adding massive value to the location assemblies and vehicle components for and creating numerous new qualified in Gotha the worldwide distribution of articulated jobs in addition to the existing 140.” dump trucks are scheduled to be produ- Thuringia’s State Secretary for Economic Weber Manufacturing Technologies Inc. ced in the new building complex. Up to Affairs Valentina Kerst underlined: “This from Midland, Canada is a manufacturer now, the branch served mostly as a pure groundbreaking ceremony proves that of iron and aluminium precision tools, assembly plant. According to the direc- Thuringia offers the best conditions for mainly for the automobile, air and space tor and plant manager André Krings, the companies that are investing for the industries. As sales in the German aim is to produce especially the large long term and want to grow.” (cdo) market are currently experiencing rapid growth, the company will in future offer aftersales, repair, and maintenance services for its German and European BMW is expanding at its Eisenach location customers in the industrial area Gotha- Süd. The company maintains three pro- The automobile producer BMW is vigorously continuing its growth at its Eisenach duction facilities in Canada with around location: The BMW Group will invest 42 million euros in its Thuringia factory by 220 employees. (maa) 2022, thereby doubling the production space and increasing its staff by 20 per- cent. Eberspächer catem is “The further investments and develop- 50%. In addition, the plant is increa- growing in Hermsdorf ment of our plant ensures the long- sing its training and integrated degree term competitiveness of our location. program positions from 9 to 24. Besides The subsidiary of the Eberspächer Additionally, it is a mark of trust by our Munich and Dingolfing, Eisenach is Group already launched the construc- company in the performance capacity today the third location for the world- tion works for its new production plant of our workforce in Thuringia,” says the wide provision of automobile plants with in Hermsdorf in March. On a lot of three plant manager, Michael Eckl. “We are highly state-of-the-art pressing tools. In hectares near the highway A4, a new proud that this will make us the largest addition to the tool shop, the Eisenach plant that expands the already existing tool shop location in the BMW Group plant has in recent years specialized in production area by approx. 10,000 m² production network.” the production of nearly all the outer is emerging. Additionally, the plan Today, the Eisenach plant manufactures shell parts for Rolls Royce cars as well as is to continually improve production up to 40 tool kits for the pressing plants for BMW M models and components for technologies and processes in a new of the BMW Group annually: with the the BMW motorcycle division. (hw) development building. The company, expansion, the capacity will rise up to Full service for investors in Thuringia which produces ceramic parts for the automobile industry, supplies nearly all Since 1992, the State Development Corporation of Thuringia mbH (LEG) has been the internationally active automobile produ- competent contact partner for companies seeking to establish a new site or expand cers worldwide. Through the investment in the Free State. The business location Thuringia offers the best conditions for this. and creation of up to 150 new jobs, the strongly increased demand should be sufficiently covered. (boe) Once again, the positive results as enjoy exceptionally good conditions for regards the statistics of successful continuing growth. In the last years, the investment projects are evidence of number of foreign direct investments EJOT is setting the attractiveness of Thuringia. Since also rose again. 18 companies from new standards the beginning of 2017, altogether 78 abroad invested 200 million euros companies have made the decision to during this period and thereby created The EJOT company, domiciled in Tam- come to Thuringia or to expand their 1,000 jobs. Currently, 140 investment bach-Dietharz, has plenty of reasons to local production. In the course of this, projects with a total volume of about be happy. In addition to celebrating its around 3,400 jobs were created, and the 4 billion euros are in the pipeline, 25-year anniversary, the internationally investment volume totaled approximate- among these 60 projects by foreign active screw manufacturer was also ly 760 million euros. The substantial investors with a volume of approxi- privileged to celebrate a special award number of expansion investments (49) mately 2 billion euros. (maa) this year. The specialist for joining tech- show that companies in the Free State nology was distinguished as one of the most innovative companies in Germany. To guarantee quality and innovation strength in the future at the Thuringian site, as well, EJOT has been expanding its production facilities for around 20 million euros since April. The new construction of a surface technology center as well as a new outgoing goods yard with four truck docking stations are heralding a new era for the location with an outlook of creating 20 new jobs. EJOT customers come primarily from the automobile and supplier industries, electronics, and the building industry. (cdo)

The industrial park “Erfurter Kreuz”. Photo: LEG Thüringen / Heiko Wagner, Erfurt 30 million euro high tech investment Thuringia creates space for new investments The Vacom company is vigorously On behalf of the state, the LEG accelerate the development of modern industrial expanding its company headquarters areas that offer investors from all over the world the best conditions for their in Großlöbichau near Jena. The vacu- entrepreneurial projects. um specialist wants to grow further by investing in new technologies and is By way of example, the work on the ex- that are interested in large contiguous investing 30 million euros together with pansion of the “Kiebitzhöhe” industrial areas. The latest completion was the partners. New construction of a hall is area in Kölleda in central Thuringia is development of the “Goldene Aue” planned in which present production running at full speed. Fully developed industrial area near Nordhausen that will be accommodated on 4.000 m². spaces will shortly be available here offers space for investments on 80 Already in October 2018, mechanical for all companies that want to estab- hectares. In in eastern Thuringia, production is due to move to the new lish in the direct vicinity of the Daimler the LEG is developing the “Cretzschwitz” hall. Through restructuring and the new subsidiary MDC. Moreover, the LEG is area that should encompass 37 hectares building, 50 to 100 new jobs should expanding industrial spaces in Eisfeld/ of building land in the future. Likewise, come into being in the coming years, South Thuringia as well as marketing the as in the aforementioned areas, the according to the statements by the already developed fourth construction largest industrial area of Thuringia, the company – currently just over 200 staff phase at the “Kyffhäuserhütte” location “Erfurter Kreuz,” also includes an out- are employed. The company, founded in Artern. standing transportation connection with in 1992, develops and sells vacuum As part of a comprehensive large-area short routes to the highways. This area mechanics, optics, and measuring initiative by the Free State, the LEG is is being developed as far as possible. technology worldwide and belongs to additionally developing areas at various Subsequent works will ensue. (hw) the leading European providers in this locations in Thuringia for companies area. (cdo) 100 million euros worth of acknowledge- Wintersteiger expands ment to its production location in Thuringia production in Arnstadt The Thuringia subsidiary of the Austri- It is a significant token for the unabated hunger for biscuits in Germany and the an Wintersteiger Group is on a path of world – as well as a clear affirmation of the Kahla location in Thuringia. growth and expanding its existing capa- cities by 2,000 m² in an overall produc- The Griesson – de Beukelaer company The new buildings will not only increa- tion area of 6,800 m². Since 2006, the has recently announced an expansion of se production capacity. The high rack company has already been producing more than 100 million euros in the plant warehouse will triple the storage capaci- saw blades for most varied applications south of Jena. A new production hall ty. There will also be an increase in staff in the industrial area of ”Erfurter Kreuz” with four new production lines, a high – around 70 new jobs should emerge and, through the expansion, production rack warehouse and a new gatehouse in the course of the location expansion. of these will grow in the future to more with an additional truck waiting area Since the plant in Kahla came into ope- than 20,000 meters daily. Beyond this, will be built. As early as 2019, the first ration in 1993, Griesson – de Beukelaer the maintenance and repair of saw goods should come off the line. “This is has already invested over 200 million blades will be significantly developed. one of the largest investments in compa- euros in it. Today it belongs to one of Over 3 million euros are being invested ny history,” says the managing partner the most modern in Europe. Currently in facilities and buildings. The company Andreas Land. “The aim is to further 435 employees work there, including 19 exports to over 50 countries worldwide develop the company and to offer staff trainees. (cdo) and thereby achieves an export rate of a perspective.” 85%. (boe)

Thüringen

The groundbreaking ceremony for the “prizeotel Erfurt-City” took place in the presence of the Thuringian Minister-President (3rd from right). Photo: LEG Thüringen / Andreas Hultsch

A unique hotel is being built in the center of Germany Publisher: State Development Corporation of Thuringia Not long ago, the ICE high speed hub at the main station in Erfurt was launched: Landesentwicklungsgesellschaft Thüringen Since then, the state capital of Thuringia can be reached from the metropolises of mbH (LEG Thüringen) Berlin, Munich, Frankfurt, and Dresden in a maximum of two and a half hours. Editorial Staff: Dr. Holger Wiemers (V.i.S.d.P.), Christoph Dolata, Christine Maas Erfurt and Thuringia will hence become York star designer Karim Rashid. The Copy Deadline: 10/07/2018 Translation: Toptranslation GmbH, Hamburg even more a center of attraction for official groundbreaking ceremony for the Layout: RITTWEGER + TEAM companies, conference providers, and building, that is due to open its doors at Werbeagentur GmbH Erfurt, Suhl tourists. To utilize this potential, the LEG the end of 2019, took place at the end of Printed by: Druckerei Multicolor Thüringen is developing a new quarter, June. Maximilian May from the investor the ICE City, in which people can work, May & Co. and Marco Nussbaum, foun- Contact: attend conventions, live, and spend der and CEO of prizeotel, had words of their leisure time on an area of around praise for the location. “Erfurt is a great Dr. Arnulf Wulff – Senior Vice President 30 hectares surrounding the main city, and Thuringia is simply a wonderful Member of the Management Board Dept. Investment, International Business station. Federal State,” said Marco Nussbaum. and Cluster Promotion The first attractive “building block” “There is enormous performance here Mainzerhofstrasse 12 in this quarter will be the “prizeotel every day, and I am personally happy 99084 Erfurt, Germany Erfurt-City” an economy-design hotel that this is our first location in the new Phone: +49 (0) 361 5603-450 with 208 rooms in direct proximity to Federal States!” (hw) [email protected] the main station, designed by the New www.invest-in-thuringia.de