Park tenants invest a total of EUR 341 million in 2016 – Infraserv Höchst on growth track
This year marks Infraserv Höchst's 20th anniversary – a milestone in the evolution of the industrial service provider and operator of Industriepark Höchst. When Infraserv Höchst opened its doors for business in 1997, plenty of naysayers questioned the viability of its business model. Today, it is a vigorously healthy, successful company, with a well-established site operation model pioneered at one of Europe's most vibrant, dynamic chemical and pharmaceutical parks: Industriepark Höchst. Its success was borne out by figures that Jürgen Vormann and Joachim Kreysing, the CEO and COO of Infraserv Höchst, presented at a press conference.
Total investment in the industrial park since 2000: EUR 6.99 billion
Park tenants' investments in Industriepark Höchst totaled EUR 341 million in 2016, only marginally less than in the year before. Overall, tenant investment remained stable at the same level as the past 15 years. "Given the challenging investment climate for Germany’s chemical and pharmaceutical sector, it’s truly remarkable that overall investment in Industriepark Höchst remained so high," said Jürgen Vormann. He added that the investment levels once again stood testimony to the park’s international competitiveness, which it owed to the unique business conditions that Infraserv Höchst had created in close cooperation with the tenant companies. Since 2000, a total of EUR 6.99 billion has been invested in Industriepark Höchst. Joachim Kreysing noted, "Few other chemical and pharmaceutical parks in Germany can match this level of investment."
Operating conditions for industry must not deteriorate
The Infraserv executives warned against taking this high level of investment for granted, though. Operating conditions for manufacturing and research companies should not be allowed to deteriorate further. Vormann and Kreysing identified several critical factors in this context. One of them was energy policy. German companies remain at a competitive disadvantage compared to other countries and need greater planning certainty. The Infraserv managers, however, also saw a need to take action on education policy, transportation infrastructure and digital infrastructure.
Protect room for Industriepark Höchst to expand
One core issue for Industriepark Höchst: The park needs space to expand without zoning regulations getting in the way. "We want neighborhoods in western Frankfurt to have the freedom to grow, but not at the expense of Industriepark Höchst," said Vormann with an eye to the revision of the Seveso Directive. To protect the park, its 22,000 jobs and its significant trade tax revenues over the long term, Vormann believes that all urban planning decisions should consider the interests of manufacturing companies as well. Vormann was optimistic that current talks with the Frankfurt city government would lead to a viable, future-proof solution.
Infraserv Höchst on growth track
Vormann and Kreysing also reported encouraging figures for Infraserv Höchst. In the 2016 financial year, Infraserv Höchst KG's revenue declined roughly ten percent to EUR 858 million. However, the decline was attributable to the company's deliberate decision to scale back its energy trading activities considerably. Kreysing explained, "The regulatory environment makes it very hard for us to turn a profit in this business."
Other Infraserv Höchst businesses, however, harbored promising growth projects. Infraserv experts from various disciplines, for example, are in great demand in and outside the park. Units such as Facility Services have recently won major new accounts, the Provadis subsidiary is growing steadily, and waste management volumes are on the rise. "In addition to growing with our customers who are investing in research and production at Industriepark Höchst, we are increasingly supplying services to companies located outside the park, too," said Kreysing.
20 years of Infraserv Höchst. It sounds like a good reason to celebrate. But there won't be a huge gala this year. "We're saving it for our 25-year anniversary," said Vormann. By then, the Infraserv Höchst success story will be several chapters longer.
Headquartered in Frankfurt, Germany, Infraserv Höchst operates advanced infrastructure for companies in the chemical, pharmaceutical and related process industries. Infraserv Höchst leverages its experience and capabilities in site operation, management and consulting to deliver site excellence for its customers. The company, which operates sites such as Industriepark Höchst, offers services in utilities, waste management, logistics and site services.
The wholly owned subsidiaries in the Infraserv Höchst Group include Infraserv Logistics and Provadis Partner für Bildung und Beratung.
Infraserv GmbH & Co. Höchst KG has 1,800 employees and 132 trainees on its payroll. The Infraserv Höchst Group has 2,500 employees and 162 trainees. In 2016, Infraserv Höchst and its subsidiaries generated approx. EUR 1.1 billion in non-consolidated revenues.
Industriepark Höchst is home to around 90 companies in pharmaceuticals, biotechnology, basic and specialty chemicals, crop protection, food additives and services. Some 22,000 people come to work at Industriepark Höchst. The site covers 460 hectares (1,137 acres); 50 hectares (123 acres) are still available for use. The companies at the park invested around EUR 341 million in the site in 2016. Total investment since 2000 amounts to roughly EUR 6.69 billion.
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