Fiege to store tyres for European car manufacturers in Žatec

Industrial developer CTP has leased 18,000 sqm to Fiege, a European logistics and transportation services provider, in a new industrial building with a total area of 71,000 sqm. The hall is currently under construction at CTPark Žatec.

This is Fiege's third location in the CTP portfolio, following existing leases in Poland and the Czech Republic, and will bring the total occupied space in all CTP parks to 59,000 sqm. From April 2024, the new regional distribution centre at CTPark Žatec will be used for the storage of Nexen Tire Europe tyres and their delivery to automotive manufacturing plants across Europe. The warehouse had to be specially adapted to store tyres in transport cages. Fiege will provide complete logistics services at CTPark Žatec for Nexen Tire Europe, which has its European production facility nearby.

The new agreement responds to the current trend of "nearshoring", where many companies are bringing production closer to their customers and expanding their European production capacity, which is leading to an increase in supply chains. Therefore, Fiege has extended its cooperation with South Korean tyre manufacturer Nexen Tire Europe and will transport tyres from CTPark Žatec to the production sites of European carmakers such as Volkswagen, BMW, Audi and Škoda.

"This project in CTPark Žatec is a key step in our strategy to strengthen our logistics operations in Europe and is a direct response to the growing trend of nearshoring, where companies are bringing production closer to their main markets. The cooperation with CTP and the use of cutting-edge technologies in our new distribution centre will enable us to provide highly efficient and sustainable logistics services. We are proud that this move not only increases value for our clients and partners, but also actively contributes to the development of the region and supports the local economy," explains David Peterka, head of business development at Fiege.

"The cooperation with Fiege in CTPark Žatec is already the second joint project in the Czech Republic and the third in Europe, as Fiege is also in our premises in Poland. These repeated partnerships prove how effectively we can grow and develop together with our clients. Our mutual understanding and ability to respond to Fiege's specific needs allows us to provide services that support their expansion while strengthening our position in the market," says Jakub Kodr, Managing Director and Sales Director of CTP in the Czech Republic.

In the new distribution centre, Fiege will store tyres in transport cages rather than in conventional racking. CTP's experience and flexibility ensured the necessary adjustments to the project, given the strict fire and safety requirements that this type of storage requires. Fire sections were modified and better sprinkler heads (K360) were installed. Both CTP and Fiege, which is committed to sustainable logistics as part of its strategy, are committed to high levels of sustainability and energy efficiency, which is why the building is being constructed with the aim of achieving BREEAM New Construction Sustainability Certification at Excellent level.

"The collaboration between Fiege and CTP is an example of the effective integration of logistics needs and industry capabilities that results from Knight Frank's careful planning and strategic advice. Our role was to create a bridge between Fiege's specific needs for Nexen Tire Europe and CTP's unique warehousing solution from the developer, right at Nexen's production site. I am truly delighted with the further transaction with Fiege, which continues to strengthen its position in the Czech market," adds Markéta Vrbasová, Head of Industrial Leasing at Knight Frank Czech Republic, who was behind the extension of the cooperation.

CTPark Žatec is located in an established industrial zone approximately 30 kilometres from the German border on the D8 motorway and close to the D7 motorway connecting Prague with Chomutov. The area is located between three districts with approximately 300,000 inhabitants within a 30 km radius of the park, with the advantage of quality infrastructure and business incentives supported by the state. CTPark Žatec offers buildings for manufacturing, logistics, research and development and back-office. In addition to the ZA4 hall currently under construction, which has 53,000 sqm of vacant space remaining, CTPark has Shell & Core space available in two other halls of four and nine thousand sqm, which the developer says can be adapted within six months of signing the contract.

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Source: Systémy logistiky, Fiege