Top Investments 2017 in Hessen

January, 2018

Prologis Germany Management GmbH

During the course of 2017 the US-based company Prologis, Inc. developed a 35,200 square meter logistics center for DHL Paket in Ludwigsau near Bad Hersfeld in northern Hessen. Prologis entered into a long term lease agreement with DHL governing the use of these new facilities, which feature both warehouse and transshipment areas. The transshipment area alone covers an entire 10,000 square meters. The continued growth exhibited by the e commerce segment has given rise to the need for additional capacity at DHL Paket’s Ludwigsau facilities. From this logistics center, merchandise can be delivered to an end customer anywhere in Germany within 24 hours. Furthermore, DHL has extended the current lease agreement in place with Prologis concerning the 37,500 square meter facilities in Ludwigsau. The launch of operations at the new logistics center will mark the enlargement of the facilities to cover a total area of just under 73,000 square meters situated on a 21-hectare property. Construction began in April 2017 with Prologis handing over the completed facilities to DHL on an incremental basis starting in November 2017.

GSK Vaccines GmbH

The UK-based pharmaceutical company GlaxoSmithKline (GSK) is expanding its vaccine production activities in the city of Marburg in central Hessen. Ground was broken in March 2017 on the construction of a new meningococcal B vaccine production facility. By investing approximately €162 million in the production of this pioneering vaccine, GSK has signaled clearly its long term commitment to pursuing vaccine production operations in Marburg. Construction of the new facilities will allow for efficient production capacity utilization and the continued pursuit of the location’s strategic realignment. Dr. Thomas Schäfer, Hessen’s Minister of Finance, emphasized that, “Whenever the leading vaccine producer GSK decides to reinvest in its Marburg location, this marks a good day for the city, the people of Marburg, and the entire state of Hessen. The construction of the new facilities will enable Hessen to further consolidate its position as the prime location in Germany for the pharmaceutical industry.” The city of Marburg has a rich tradition of vaccine production dating back more than 110 years.

GSK with guests at the groundbreaking ceremony for the Marburg Meningitis Protein (MMP) plant (from left to right): Mark Ruppersberg (Project Manager MMP Plant), Handan Özgüven (Member of the State Parliament), Dr. med. Thomas Spies (Lord Mayor of Marburg), Jochen Reutter (Site Manager and Managing Director), Dr. Ing. Thomas Schäfer (Hessian Minister of Finance), Sören Bartol (Member of the Federal Parliament), Dr. Ing. Niklas Schier (Head of Quality Management and Managing Director). © GSK

OVH GmbH

The French-based IT company OVH has established a physical presence in Germany with the commencement of operations at its new data center featuring 45,000 servers in the central Hessian town of Limburg in April. The decision to construct the new facilities in Limburg in the immediate vicinity of an electrical substation was made in the autumn of 2016 . The construction of this data center is very much in line with OVH’s corporate strategy given Germany’s strong economy, strict data privacy laws, and reliable energy supply. With approximately 260,000 servers, OVH is the European market leader and ranks among the leading IT infrastructure providers worldwide. The company operates 20 ultramodern data centers across Europe and North America as well as its own fiber optic network featuring total bandwidth of 7.5 TB/s and 32 points of presence across three continents in addition to carrying out its own in house server production activities. The family owned and operated company is present in 19 countries across the world (in Germany since 2006) and currently employs around 1,500 people. OVH’s approximate €8 million investment in the construction of the Limburg data center has created around 20 jobs.

OVH data center in Limburg © OVH

Pfeifer Group

The Austrian based Pfeifer Group has plans to expand its facilities in the central Hessian town of Lauterbach. The company is set to invest around €30 million in the construction of a new cross-laminated timber plant on its current premises that will feature an annual production capacity of 100,000 cubic meters of cross-laminated timber. The start of construction in the autumn of 2017 marks an additional investment by the Pfeifer Group in the consolidation and expansion of its current market position while simultaneously broadening the range of products that it offers in the wood construction segment. Pfeifer’s presence in Lauterbach dates back to 2009, when it opened an industrial scale sawmill, a compressed wood brick production facility, a biomass heating plant, and a pelletizing plant on an approximate 50 hectare property. Pfeifer generated revenue of approximately €120 million in 2016 and employed around 190 people.

Thriving Horizon Investment Europe GmbH

Founded in 1958, the Chinese parent corporation Beijing Automotive Group Co., Ltd. now ranks among the five largest automotive companies in China. The BAIC Group recorded revenue of approximately €44 billion in 2015 and employs a total of around 90,000 people. In addition to the automotive sector, the group is also active in the financial management, innovative energies, and aviation industries. Its German subsidiary Thriving Horizon Investment Europe GmbH was launched in March 2017 in Frankfurt am Main and focuses on the automotive and automotive supply segments as well as on vehicles and autonomous driving systems powered by renewable energies. The company intends to secure M&A and joint venture opportunities by means of investments and equity investments.

Daikin Applied Germany GmbH

Daikin Industries Ltd. is a worldwide leading producer of air conditioners and a Fortune 1000 company based in the Japanese city of Osaka. Founded in 1924, the company now employs around 60,000 people worldwide. In May 2017, Daikin Applied established a sales office in Germany in the city of Frankfurt am Main for the purpose of serving the quickly growing market for large scale air conditioning systems. The commencement of the company’s operations has created 15 jobs.

Dexerials Europe B.V.

Dexerials is a chemical corporation based in Japan. The launch of operations in Frankfurt am Main was carried out by the company’s Dutch subsidiary in April 2017. Dexerials specializes in the production of chemical components used, among other things, in medical equipment, consumer electronics, and automotive industry products. The German office primarily focuses its attention on customers in the automotive industry. This involves the direct sale of products such as anti reflective film for car display screens, special adhesives for cameras used for autonomous driving, and adhesive tapes with conductive properties to German automotive suppliers and vehicle manufacturers. The opening of the German office has created five jobs.

Godrej Security Solutions

The Godrej Group, which is the largest conglomerate in India, established its presence in Germany in March 2017 by founding the company Godrej & Boyce Mfg. Co. Ltd. in Offenbach am Main. The global corporation’s showroom features products from its security division as well as a walk in vault and a wide range of security related solutions. Godrej Security Solutions is the industry leader in the security solutions segment in India and also enjoys IMS certification. Even before the opening of the Offenbach office, Godrej was frequently awarded certification by international (including German) inspection companies and has received numerous German and international accolades, such as recognition as Asia’s most preferred home security provider. The Godrej Group has been operating in India since 1897 and has subsidiaries in nearly every industrial and consumer goods sector. In light of its 28,000 employees worldwide and revenue of approximately €3.4 billion, the group’s decision to establish a physical presence in Germany will serve as a major enrichment to Hessen’s already strong culture of hosting businesses from across the globe.

HIOKI Europe GmbH

Hioki E.E. Corporation is a midmarket company based in the Japanese city of Nagano specializing in the production of electrical measuring instruments with worldwide revenue of around €140 million. The company was founded in 1935 and now employs around 800 people across the globe. Its German subsidiary HIOKI Europe GmbH was established as a sales office in Eschborn (near Frankfurt am Main) in June 2017, which has created jobs.

Neusoft Medical Europe GmbH

Neusoft Medical Europe GmbH, which is based in Eschborn (near Frankfurt am Main), engages in the international trading of merchandise of all sorts, but in particular computer programs, computer parts, CT scan equipment, ultrasound equipment, X-ray machines, magnetic resonance imaging equipment, medical diagnostic equipment, and related accessories. Its Chinese parent corporation produces medical equipment and provides medical services. The company is also involved in providing services and conducting research and development activities in the aforementioned medical segments, providing technical related consultation, and offering leases, repairs and maintenance of medical equipment and accessories. The opening of facilities in Eschborn in January 2017 led to the creation of five jobs.