Business Forum • 3 April, 2024 at 8:48 AM
CTP, Europe's largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has leased 3,600 sqm of production space at CTPark Oradea Cargo Terminal, Romania's pioneering industrial park featuring an air cargo terminal, to leading Asian EMS (Electronic Manufacturing Services) company Etron Technology. Etron Technology decided to expand their worldwide presence (China, Vietnam, Mexico, Singapore) by setting up a high-tech production plant in Europe at CTPark Oradea Cargo Terminal.
Etron decided to establish the new facility in Romania to attract more business opportunities from EU customers, reflecting the growing demand from multinationals looking to ‘nearshore' the production of their goods destined for European markets. Romania's partial integration into the Schengen Area, along with its expanding air and sea transport networks, enhances its status as a production hub, supported by competitive advantages like skilled labour, digital innovation, and favorable tax rates, driving economic growth and investment.
Etron is an EMS supplier for PCBA (Printed Circuit Board Assembly), with customers focused mainly on fields like industrial control, medical, automotive, communications, new energy, and high-end consumer products, and will operate the Romanian plant mostly for a SMT & MI production line with testing & assembly. Given the complex operations, the new production hub will benefit from temperature and humidity control with an integrated BMS system ensuring all quality standards are met. Furthermore, the new factory is equipped with static electricity discharge, compressed air, N2 and other custom equipment that offers safety to its operators and also achieves the highest technical standards.
Andrei Brinzea, Business Development Director at CTP Romania, said: “The CEE region's reputation as a strong manufacturing base dates to the Habsburg Empire and now, Romania, the second largest market in CEE, stands out as a prime destination for manufacturing. With plenty of skilled workers, including one of highest shares of STEM (Science, Technology, Engineering, and Mathematics) students in Europe (29.3%), and ongoing investments in infrastructure like new highways, Romania offers great opportunities for businesses. As we extend a warm welcome to Etron Technology into our community, their arrival underscores the synergy between CTP and manufacturing businesses, where beyond mere space, we provide an adaptable environment tailored to evolving needs.”
Andrei Ghițeanu, Project Manager MEP at CTP Romania, commented: “We thrive on the intricate coordination of custom-built spaces, where each dimension and arrangement is meticulously crafted to meet the unique needs of production. These projects are not just constructions, they are showcases of precision, executed on a tight timetable to deliver turnkey solutions that exceed client expectations. Partners like Etron complete our business communities' ecosystems, bringing added value to the supply chain whilst benefiting from our top-notch building characteristics. We are happy to see that our vision is shared by more and more companies, who choose our CTParks as the place to settle and grow. Etron's new production capacity also reflects the increased demand for nearshoring, as Asian businesses expand their production capabilities closer to their European customer base and Oradea's potential for attracting new production facilities.”
In a 2022 survey of European companies to discover likely destinations for nearshoring, conducted by international shipping and logistics company MAERSK, Romania was in the global top ten. Oradea is increasingly becoming a production hub for companies wishing to ‘nearshore' in Europe because the area has a stable business environment. Benefits such as a strong manufacturing base, a wealth of skilled human capital, attractive labour costs and market connectivity make the region a nearshoring hotspot.
CTPark Oradea Cargo Terminal is built on 14.4 hectares of land and includes three buildings with a total leasable area of 65,000 sqm and numerous specific infrastructure elements, such as the aircraft parking apron or the taxiway connecting the aircraft parking apron to the airport runway. Located in the western part of Romania and only 10 km from Borş, the largest border point on the western border, CTPark Oradea Cargo Terminal benefits from direct connections with Oradea Airport and the Eurobusiness II industrial center, as well as with large neighboring cities such as Timisoara, Arad, Cluj-Napoca, Deva, Debrecen, and Budapest.
Romania is CTP's second largest market, comprising over 2.6 million sqm of its portfolio across Class A industrial and logistics space in more than 15 Romanian cities, including Arad, Brasov, Bucharest, Caransebes, Cluj-Napoca, Craiova, Deva, Oradea, Pitesti, Sibiu, Targu Mures, Timisoara, Turda, Ineu and Salonta.