The Ústí nad Labem Region finished last in the number of newly built industrial complexes last year, with only about 10,000 m2 being built. However, interest in this North Bohemian location is growing and in the future there may be some of the largest projects in the Czech Republic.
The Ústí nad Labem Region was markedly helped by the completion of the D8 motorway, which accelerated transport to Germany. It is also a region with long-term high unemployment (according to the Czech Statistical Office, the unemployment rate was 6.6% at the end of January, making it the highest in the Czech Republic, with a national average of only 3%), which is why it has become a region that is trying to lure investors with incentives.
Nexen Tire Can Build Already
For example, the South Korean tire manufacturer Nexen Tire Corporation Czech succeeded in moving its production of passenger and light truck tires to the Triangle industrial zone near Žatec in 2014. Right from the beginning, the project had to deal with problems, as the construction faced many months of delay. The building permit was gained by the company only this April due to obstructions by the environmental association. Nexen wants to invest more than 22 billion crowns in Žatec’s industrial zone, placing this foreign investment in third place in the Czech Republic right after the opening of the Hyundai production site in Nošovice and TPCA in Kolín.
Lithium Could Attract Tesla
Courtship has started with Tesla involving both private investors and CzechInvest. They want to lure the company to the large amount of precious lithium found in Cínovec, which is crucial to making electric batteries. “We will see in the coming months whether this interest turns out to be real. In any case, if Tesla chose the Czech Republic and found a suitable plot of land, it would be an investment of a size similar to that of Nexen Tire,” said Jan Hřivnacký.
Developing New Projects in the Region
Overall, we have seen an increasing interest in renting industrial property in the region in recent months. Increased interest is also evident from developers who are actively looking for new land opportunities here. A good example is the emerging CTPark Ústí nad Labem. A new location in Teplice has also recently been presented by the developer Contera.
The region has also seen another successful business. VGP purchased an industrial zone near Chomutov from Arcona Capital at the beginning of this year. The zone spans an area of 92,000 m2, of which 48,000 m2 is intended for constructing a logistics centre or a facility for light manufacturing. Part of the site already knows its future tenants, but there are still available spaces between 3,000 and 15,000 m2. “The only factor that complicates developing new zones in the Ústí nad Labem Region is the more complicated permit process,” added Jan Hřivnacký.