The Viega Group, a global metalworking company, will be moving to Kirkel. The company has said that it plans to create around 150 new jobs within the next two years at its new production site in the ‘Am Zunderbaum’ industrial area (Homburg/Kirkel). It expects to begin manufacturing pipe connectors for the international market by the end of this year.
Rather than erecting a new building on a greenfield site, Viega made a targeted search for existing industrial areas that would be quickly available. This international family company based in Attendorn (North Rhine-Westphalia) struck gold in Kirkel through contact with the gwSaar Saarland Economic Promotion Corporation: it acquired the old logistics warehouses (including their land) from the Michelin tyre manufacturing plant. Viega plans to invest 150 million euros in developing its new site in the industrial area. ‘We need additional production capacity in order to continue our growth’, Markus Brettschneider, CEO of the Viega Group, explained. Despite economic challenges, demand has remained consistently high, especially for the metal press fittings used in the company’s core business of sanitation and heating.
Here to stay
In its hunt for the right site, which involved comparing potential options across the whole of Germany, the Viega Group ultimately opted for Saarland: particularly key factors in this choice were the high availability of skilled personnel (especially in the metal industry) and the site’s good transport links with direct motorway access. Several elements have helped ensure that this move has gone smoothly so far: Viega’s clear ideas and quick decision-making, Michelin’s willingness to cooperate, gwSaar’s role as an intermediary and provision of space, and the rapid communication processes between state and municipal levels.
In terms of future development, the company is hoping to expand the site, so is planning to acquire neighbouring plots that are currently owned by the state.
Views from Saarland
Minister-President Anke Rehlinger was delighted: ‘In difficult times, this is a fantastic success for Saarland jobs. This move demonstrates that Saarland is a hugely attractive location. Viega’s investment is redeveloping an existing site, and thus giving it a future.’
Minister of Economic Affairs Jürgen Barke described the move as ‘a huge success’ that would help to make the region more robust and diverse. ‘I would like to thank the Viega and Michelin leaderships for their constructive input, and especially the gwSaar team for their highly professional relocation management. This success shows that the state government’s forward-looking land policy is setting Saarland up in a strong position amid nationwide competition for companies seeking to relocate.’
Thomas Schuck, CEO of gwSaar Saarland Economic Promotion Corporation: ‘The project planned by Viega is a success for Saarland’s relocation policy as a whole and also for gwSaar’s approach of actively addressing and reaching out to companies looking to move. Viega found the site they needed for their planned project via gwSaar’s brownfield offerings in combination with the Michelin site and its existing buildings. I am delighted that the dedication shown by all involved to Saarland as a hub of business and industry has now paid off.’
Before it was sold to Viega, the Michelin warehouse in Kirkel was being used to cover logistics requirements for new tyre production. Michelin will continue to focus on retreading truck tyres and processing RFID chips at its Homburg site.
