Commercial Real Estate Developer And Manager | CTP

Case study:

FAURECIA

Faurecia is Europe's third-largest automotive supplier. Worldwide, one out of every four passenger cars on the road has a Faurecia made exhaust system.

FAURECIA

Faurecia is one of the world's largest automotive suppliers. The company is the global leader in each of its four core business areas: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. Faurecia’s customers include virtually all the world’s major carmakers.

“We demand the highest safety standards in building construction. CTP understands this and is able to deliver the quality standard that we require.”
Roman Budík
Plant Manager

Worldwide, Faurecia operates 274 production sites in 34 countries and employs over 94,000 people. As part of its strategy to invest in growth areas, Faurecia decided to expand its Emissions Control Technologies business in the Czech Republic with a new, 26,000 m2 custom-built production facility at CTPark Mladá Boleslav.

The new state-of-the-art building will also house an R&D centre and an IT Competence centre supporting Faurecia’s global operations. Investment in the project totals €22 mil. As part of its longterm growth strategy, the company made the decision to further expand its Emission Control Technologies business in Central Europe with a new, state-of-the-art, custombuilt facility.

Faurecia was already well acquainted with the Czech Republic when it began the process of looking for a location for the new facility. The company first invested here in the early 2000s and today operates six production lines covering three of its core business areas at four sites in the country.

“During the decision-making process, Faurecia recognised that, because we already have a small plant here in Mladá Boleslav, this could become the core of the new facility,” explains Roman Budík, Faurecia’s plant manager in Mladá Boleslav.

Faurecia’s Emission Control Technologies production plant in Mladá Boleslav currently supplies exhaust systems for several carmakers including Škoda Auto and Toyota, and the company is looking to expand its client base both in central Europe and in western markets.

“Location, of course, was also crucial to the decision. The position of Mladá Boleslav is trategic to serve customers in the Czech Republic and Slovakia. We are also very interested in customers in Germany. In terms of proximity and driving distance, this location is ideal.“

Faurecia’s new production plant for emissions systems at CTPark Mladá Boleslav will be among the largest and most modern in the company’s global supply chain. During a four-year phase-in period, Faurecia expects to ramp up with new production and to grow its staff from the current 76 to 900 employees.

As part of its consolidation and growth strategy, Faurecia is also re-locating and expanding its Czech R&D centre to CTPark Mladá Boleslav, where CTP is constructing a 4,000 m2 custom-built A-class office building connected to the production facility. “For us, this is a big move. And it is definitely a good move, especially for our customers.

Having R&D and manufacturing together under one roof provides a good mixture of services for our customers and creates a competitive advantage for the plant itself,” Budík explains.

The Czech R&D centre is part of Faurecia’s global network of 30 R&D centres, which support Faurecia’s global operations across all business lines. The Czech R&D centre launched just over three years ago and will now grow following the move to new, custombuilt facilities at CTPark Mladá Boleslav. The expanded R&D centre will focus on development and prototype manufacturing, which is an area of increasing importance for Faurecia.

Faurecia is also taking advantage of its new facility at CTPark Mladá Boleslav to establish an IT Competence Centre to support Faurecia’s global operations—the first such IT centre supporting global operations in CEE. Over 100 IT specialists working at the new centre at CTPark Mladá Boleslav will provide IT solutions to Faurecia entities worldwide.

“The level of skills and the number of skilled workers in and around the Mladá Boleslav area is quite high, and this enables Faurecia to expand its business here, including R&D and the establishment of the IT Competence Centre. In addition, many com nies that support our activities, especially in areas like machine and systems repairs, are based in this area,” Budík explains. “We are able to find the level of skilled workers that we require in Mladá Boleslav.”

Construction work is currently underway on Faurecia’s new custom-built facility at CTPark Mladá Boleslav. The work involves a high level of customisation and detail, including machinery installation. “When you lease a new facility, it is not the building itself that makes it a production centre, it’s the equipment,” Roman Budík explains. “CTP worked with us closely concerning the special requirements we have for machinery and installation. We very much appreciate this level of work.”

Custom fit-out includes the installation of special heat transfer and ventilation systems and specialised equipment for technical gases involving more than 1 km of pipes and cables. Energy efficiency and environmental responsibility is essential for Faurecia’s operations, and CTP has worked to ensure that the new buil ng meets the highest energy efficiency standards. Special heat exchangers enable heat generated by the production process to be re-distributed within the building. CTP also designed the building to maximise usage of natural light and is installing a special automated light regulation system, which controls the usage of electric lights based on the amount of natural light available. Safety is another key area for Faurecia, and the new facility at CTPark Mladá Boleslav is built with above-standard fire safety technologies.

Roman Budík explains: “Faurecia takes safety issues very seriously. For this reason, we require our manufacturing facilities to be far above the safety standards of local legislation. Worker safety is a core value at Faurecia. Moreover, because of the nature of our business, we cannot afford a shut-down of operations because of a fire or other safety issue. This would result in immediate stoppages at the world’s major automobile assembly plants, and the damage from that would be excessive. Therefore, we demand the highest safety standards in building construction. CTP understands this and is able to deliver the quality standard that we require.”

For Faurecia, the move to its new facility at CTPark Mladá Boleslav is a major step in the further long-term development of the Czech Republic as one its core markets. Already, the country is the sixth most important country in Faurecia’s global footprint, and its importance is set to rise with the launch of its new facility. CTP thus plays an important part in the roll-out of this strategy.

“From the very beginning, even in the tender phase, I could sense that CTP had a better understanding of what Faurecia needs and how the new plant fits into the wider strategy,” Budík explains. “Because of this level of understanding, and CTP’s experience, negotiations were shorter and less complicated. This is very valuable and greatly appreciated.” CTP is on schedule to finalise all construction works and handover the new facility to Faurecia in the second quarter o 2013. “CTP provided us with the best possible layout that was closest to our ideal.” Roman Budík explains. “The new plant will be a much more efficient, and much nicer, work environment. As a French company, Faurecia places great emphasis on not just the safety, but also the quality of the work environment. We are excited to be expanding operations at our new, state-of-the-art production plant, about the expansion of R&D and the introduction of the new IT service centre at Mladá Boleslav.”