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HESSE (Germany)
2003

Infraserv turned Hoechst factory into sustainable industrial park

Courtesy Infraserv Hoechst
CEO of Infraserv Hoechst, Dieter Kreuziger
Courtesy Infraserv Hoechst
Smokestacks characterize the old Hoechst factory site even as biotechnology and research firms move in

For more than a century, the Hoechst industrial complex was a trademark for Frankfurt business and one of the city’s biggest employers. Originally a dye works, Hoechst AG became one of the world’s biggest chemical and pharmaceutical companies. In the 1990s, however, Hoechst AG disappeared in a flurry of divestments, spinoffs and mergers, leaving the sprawling redbrick complex in western Frankfurt in need of a new tenant.

Enter Infraserv Hoechst, a closely held spinoff of Hoechst with the mission to redevelop the factory works as an industrial park – at the time an innovative concept that is now being copied by other European factory sites. Industry Park Hoechst offers four square kilometers of self-contained industrial space, five minutes from one of the world’s biggest and best-connected airports, complete with its own river port and railroad spurs.

With an infrastructure that includes its own water purification system – which offers six grades of water – and two fire stations (one on each side of the river), Industry Park Hoechst offers tenants a turnkey proposition that few sites can match.

“Our strength is the ability to combine different scientific areas and find solutions on a very broad scientific basis,” says Dieter Kreuziger, chief executive of Infraserv, sitting in his office in the spectacular building designed by Peter Behrens in the 1920s as an example of expressionistic architecture.

Employs 22,000

The industrial park already has 80-some companies in pharmaceuticals, chemistry, biotechnology, environmental science and related areas and employs more than 22,000 people. Fourteen new companies employing 2,000 people signed up last year and Infraserv currently is in talks with 28 companies to come to the site.

In February, IonGate Biosciences GmbH, a two-year-old startup with 18 employees announced it was moving to the park from its quarters at the Max Planck Institute for Biophysics to develop its membrane protein technology. The company cited the facts that some of its clients were also located in the park while the nearness of the Frankfurt airport gives them easy access to clients in the U.S.

The biggest tenants are Aventis, Clariant and Celanese, which inherited Hoechst AG’s activities in pharmaceuticals, specialty chemicals and base chemicals respectively. But other tenants include the crop science affiliate of Bayer – once the arch-rival of Hoechst – as well as companies like Biochemie (a Novartis affiliate), Ticona (technical polymers), Messer (industrial gases), Solvay (fluorine and derivatives), DyStar (textile dyes), and New England BioLabs.

‘Highest standards’

“We have the highest standards, proven; this is not something on the drawing boards,” Kreuziger says. “Companies can concentrate on their core business. We deal with every problem in infrastructure.”

The fire stations, for instance, which guarantee they will be at an emergency within three minutes of an alarm, translate into lower building costs and lower insurance for tenants.

Tenants can locate in existing buildings or work with Infraserv to construct new, tailormade facilities. Infraserv will even act as contractor and take care of construction and financing. Aventis invested more than150 million euros for two new insulin factories.

Besides physical infrastructure, Infraserv sells its expertise, which is particularly interesting for startups. With its well-oiled contacts to local authorities, Infraserv can be especially useful in getting the necessary approvals for certain types of technology installations.

“There are two prejudices about locating in Germany,” says Kreuziger. “Taxes are high and approvals are difficult.”

The Hoechst veteran points out that corporate taxes, which have been reduced, are still higher than in some other countries, but allowances for accelerated depreciation can cut down the tax bill. Approval processes have also been speeded up, and new tenants benefit from Infraserv’s existing ties to the appropriate agencies.

Scaling up

Once in the park, companies can further benefit from the proprietary expertise the Hoechst spinoff has developed in transferring ideas into large-scale production. “We are providing infrastructure and expertise for a successful scaling up,” says Kreuziger.

Most of the research conducted in the park is production-oriented, he says. One whole quadrant of the park, the southeast, has been designated for research and development in a master plan developed by Frankfurt architects Albert Speer & Partner.

Administration will be centered in the northeast quadrant and the centerpiece for that will be a new ensemble of buildings crowned by a 30-story tower designed to harmonize with the Behrens building and the smokestack profile of the historical plant. The new ensemble, scheduled for completion in 2012, will cost 74 million euros.

Infraserv, which itself employs almost 4,000 people, offers a variety of services to tenants, from its state-of-the-art wastewater treatment to supplying energy and 250 raw ingredients for the manufacture of chemicals and pharmaceuticals. It has a complete logistics division, technical services and even organizes training for tenant companies.

While Infraserv’s main task is to manage and develop the industrial park, the company sells its services to external clients as well. It is a major supplier of purified water and it is in charge of the planning for the Frankfurt Innovation Center for Biotechnology, a project in northwest Frankfurt (see accompanying story).

Hoechst has worked as a factory site since 1863 – and seems likely to continue that tradition in its new form. As Kreuziger says: “We combine technical know-how with sustainable ideas.”

For more information, see www.infraserv.com

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