News Article Cushman&Wakefield Kostal Lublin Panattoni Europe Poland warehouse
by Property Forum | Industrial

Kostal Automobil Elektrik, a German-headquartered system supplier to the automotive sector, has signed a lease for over 17,000 sq m of manufacturing space in Panattoni Park Lublin IV. The company was advised on the choice of location and during the negotiations by Cushman & Wakefield.

Kostal Automobil Elektrik is the largest of the five business divisions of the Kostal Group. Founded in Germany in 1912, it is now present in 21 countries, including Spain, Italy, Bulgaria, Ukraine, Mexico, the US, Brazil, China and Japan. Kostal has close to 20,000 employees worldwide and reports sales of €3.3 billion.

“Having analysed market data and the possibilities of locating a new production plant, Kostal decided to set up a new facility in Świdnik, Lubelskie province. Polish locations competed against other countries in Central and Eastern Europe. Our decision to choose Świdnik was influenced by its logistics strengths: its proximity to our Ukrainian plants and to our clients’ factories south of Poland and in Western Europe. Other key factors included workforce availability in the region and economic zone incentives. This marks just the beginning of the operations of the Kostal Group in Poland with huge future growth potential”, said Radosław Szkup, Management Board Member and Managing Director, Kostal Automotive Poland sp. z o.o.

“Kostal leased close to 15,500 sqm of production and warehouse space and around 1,700 sqm of office space in Panattoni Park Lublin IV. The building will be tailor-made to its needs and manufacturing requirements. The facility is scheduled for completion and handover in November 2023”, said Konrad Jacewicz, Associate, Industrial and Logistics Agency, Cushman & Wakefield.

“Disruptions to global supply chains and manufacturing which have impacted the automotive industry are increasingly incentivizing companies to adopt nearshoring strategies and relocate to sites guaranteeing business continuity. The beneficiaries of this trend in Poland include Lubelskie and Subcarpathia, which are seeing growth in modern warehouse projects. They also benefit from further infrastructure improvements, including the new S19 expressway, making for seamless distribution to western markets. These factors also influenced the decision of Kostal - our client - to locate operations near Lublin”, says Magdalena Muszyńska, Negotiator, Industrial and Logistics Agency, Cushman & Wakefield.

Panattoni Park Lublin IV is a new development comprising two buildings with a combined area of around 52,500 sqm of warehouse space. It is located in Świdnik, off the junction of the 822 provincial road and S17 national road.