High-Tech Manufacturer Diehl Controls, Maiden Tenant for Planned EUR 40 M R&D Centre

CTP, owner, developer and operator of logistics and industrial real estate by gross lettable area, has welcomed Germany’s Diehl Controls, a global high-tech manufacturer, as the maiden tenant at its new 50,000 sqm business park at the city of Brașov in central Romania. The 18,000 sq m built-to-suit (BTS) research and development centre and production facility involves an initial investment of EUR 15 million, which is set to increase by EUR 40 million during the ramp-up phase over the next 10 years. The development marks Diehl Controls’ first partnership with CTP and its third production plant in Europe.

CTPark Brașov is located to the north of the city on the DN13 motorway, has good connections to public transport and the nearby airport, and offers flexible space for distribution or manufacturing. Diehl Controls develops and produces electronic components and systems. The first phase of its BTS facility at CTPark Brașov is scheduled for delivery in the second half of 2024. Diehl Controls is part of Germany’s Diehl Group which employs approximately 17,000 people worldwide in five divisions.

Josef Fellner, CFO, Diehl Controls, said: “We are pleased to team up with CTP to build our third production plant in Europe, due to their development experience in Romania. This is a long-term investment that will reach EUR 40 million in total over the next decade. We found Romania to be a very competitive country in Central and Eastern Europe with quality labor force, good engineering potential, a country providing both stability and security. Working alongside InvestRomania made our decision process more straightforward. Brașov is strategically located in central Romania, offers very good infrastructure and is a preferred industrial destination for skilled workers. These were all important criteria for us while selecting the location for our new investment. We aim to make a long-term contribution to the further economic development of the city of Brașov and the rest of the region through this project.”

Diehl Controls currently operates two manufacturing plants in Europe: one at the company’s headquarters in Wangen near the German-Swiss border with approx. 550 employees, and another in Namyslow near Wroclaw in the southwest of Poland, where it employs approximately 1,300 staff.

Ana Dumitrache, Country Head CTP Romania, said: “We are consolidating our position in Brașov and in the region with a new business park of 50,000 sq m. We are proud to welcome Diehl Controls as our first tenant at CTPark Brașov and to help attract such a significant investment to Romania. Diehl’s decision to establish an operation here is yet another endorsement of Romania’s strategic location within Europe and its outstanding credentials as a nearshoring destination, both for warehouse distribution and manufacturing.”

Diehl Controls’ new production facility at CTPark Brașov will create more than 200 new jobs by the end of 2024 assuming both the approval procedures and construction of the facility go according to plan. That number is expected to increase to more than 600 jobs by the end of 2027 Diehl Controls, in cooperation with the city of Brașov, plans to support and jointly develop the Transylvanian University’s dual education programme for qualified professionals, technicians and engineers, created by the local industry. The existing training system in Brasov is comparable to the system in Germany. For Diehl, this was an important decision criterion for the selection of the location in order to gain good skilled workers for the production plant in Brasov.