Intel's Magdeburg Move Spurs Saxony-Anhalt's High-Tech Park Plan
With Intelsetting up shop in Magdeburg, Saxony-Anhalt is pushing ahead with establishing its planned high-tech park. According to the state finance committee's announcement on Monday, the state will now handle the establishment of the company originally meant for the local municipalities. Unfortunately, an agreement couldn't be reached, and the Ministry of Finance felt the need to act quickly to preserve the Intel settlement.
The high-tech park in the area surrounding Intel's facility is primarily for supplier companies. The Ministry of Finance has set aside approximately 250 million euros, factoring in land purchases and existing contract takeovers. The financing strategy involves taking out a loan to foot the bill.
The Left Party expressed concerns about the plan. Financial policy spokesperson Kristin Heiß argued that debts were being circumvented to avoid parliamentary scrutiny.
The state parliament's economic policy committee plays a crucial role in decisions surrounding the high-tech park's financing. This committee serves to examine and evaluate economic policies and their financial implications, including major projects like high-tech parks.
Insight: The substantial investment of €17 billion towards two new chip factories (initially planned in 2023, now set for late 2024) by Intel in Magdeburg necessitates a robust supporting infrastructure.
Intel's Magdeburg project involves a partnership with Brookfield Asset Management, co-funding 51% and owning the remaining 49% of the project costs, thereby sharing in the revenue generated from these facilities.
Although the Left Party has voiced objections to the current approach, its specific stance on this matter is not publicly documented as yet.
By establishing this high-tech park, Saxony-Anhalt hopes to attract more tech providers, fostering growth and innovation in the region.
