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New Arrivals in Hessen: Finoba, MGW Service, and the Otto Group

Hessen offers a plethora of opportunities to companies operating in the state. The automotive supplier Finoba, for example, is well aware of these perks.

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© Otto-Pressebild

The lightweight construction specialist invested €20 million in a new production line at its Baunatal location last year. This is marking a 20% expansion in investment that gave rise to an increase in headcount from 125 to 150 employees. China’s Sinomach Group thereby honored the guarantee made following the March 2017 acquisition of Finoba to invest in the midmarket company’s growth strategy.

MGW Service is another company that plans to continue its Hessen‑based operations at its Kassel location. MGW is a private service provider that maintains, repairs, and modernizes locomotives across Europe and is a joint subsidiary of the French railway technology leasing company Akiem and Deutsche Bank. Construction on the company’s new headquarters began in September, marking the commencement of a project involving a total investment volume of €3 million.

Germany’s Otto Group will be opening the doors to its new Giessen facility, its first‑ever location in Hessen. Otto announced the upcoming expansion of its logistics network in January after more than a year of consultation and coordination with the city of Giessen and the conversion development specialist Revikon GmbH. An approximate 90,000-square-meter building is set to be constructed starting in 2020 on a section of the Am Alten Flughafen site, which formerly served as US Army grounds. Otto plans to use this site as a base from which it will deliver products ordered online to customers within 24 hours. This will be possible by the excellent road infrastructure that includes the nearby highways BAB 5, BAB 480, and BAB 485. Otto plans to utilize these highways on a daily basis from 2022 onward to transport parcel shipments by truck directly to the regional distribution centers across Germany, from which point the parcels will be delivered to customers’ doorsteps.

Otto plans to invest €300 million in its new central German hub and has suggested the creation of several hundred new jobs, while the city of Giessen anticipates the creation of up to 1,800 jobs by the time of the expansion’s completion. Otto proudly emphasizes that its decision to use the former US Army grounds for its new hub will serve to avoid the unnecessary cultivation of undeveloped land.

Giessen’s mayor and head of planning Peter Neidel is pleased: “we are delighted that the marketing was carried out so quickly and the logistics center has allowed for the creation of a large number of new jobs in Giessen. The scale of these operations is also of considerable importance for Giessen as a university town.”

Dr. Rainer Waldschmidt, CEO of the state of Hessen’s economic development agency Hessen Trade & Invest GmbH, also views the establishment and expansion of operations by these companies as affirmation of the advantages offered by Hessen as a business location. “Hessen’s position in the heart of Europe provides companies across a wide range of industries with a solid basis for conducting successful operations in Germany and Europe. In addition to the location, Hessen’s excellent road, railway, and air transportation infrastructure constitutes a decisive factor in this regard.”

If you would also like to take advantage of all that Hessen has to offer and are planning a German market entry, the investment advisors of Hessen Trade & Invest GmbH will be pleased to provide assistance with any questions or concerns that you may have.

Fabienne Privat, Senior Manager, Investor Services, fabienne.privat@htai.de, +49 611 95017-8303
Andreas Damrau, Senior Manager, Investor Services, andreas.damrau@htai.de, +49 611 95017-8346

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