Another Chinese company is coming: It is opening its first European plant in Serbia

CTP, the largest European investor, owner and manager of industrial and logistics real estate by gross lettable area (GLA), announced that it has leased 19,000 square meters of warehouse and office space in Serbia to Shanghai Huizhong Automotive Manufacturing Co., LTD. (SHAC), China's leading supplier of automotive parts and systems.

SHAC will be positioned in CTPark Novi Sad East, which includes both warehouse and office space, and in the CTP statement it is pointed out that SHAC is ready to establish its first production facility in Europe in their park, "marking a major milestone in the company's global expansion", reports Business portal.

"This move reflects the growing trend of nearshoring, where multinational companies increasingly move their production closer to key markets. This shift is driven by global supply chain disruptions and changing geopolitical conditions. With this transition, companies aim to reduce logistical complexity, shorten supply chains and improve access to their customer base in Europe," CTP said in a statement.

In its first plant in Serbia and Europe, SHAC will initially focus on the production of chassis components for BMW. The construction of the first phase should begin in February 2025, and the start of work is expected in December 2025.

The announcement also points out that there is a potential to expand the original 19,000 square meters to 30,000 square meters.

Petar Kolognat, director of business development at CTP, estimated that the contract with SHAC is a clear indicator of how our region is becoming an increasingly attractive destination for global manufacturers, especially Asian companies.

"We have seen strong demand in various industries and we expect this trend to accelerate as companies continue to bring production closer to their European customers," Kolognat pointed out.

Gong Min, Deputy General Manager at SHAC stated that the strategically situated location offers excellent connectivity and direct access to key regional markets, enabling them to improve production capabilities and deliver products to our customers more efficiently.

"We are confident that our first European production facility will serve as a solid foundation for our continued growth and expansion in the region," said Gong Min.

CTP in Serbia, by the way, manages a total gross leasable area (GLA) of 500,000 square meters in seven parks. As they point out in the announcement, these parks are strategically located in key cities, including Belgrade, Novi Sad, Kragujevac, Jagodina and Niš.