Analysis: Who will win the race to become an industrial park?

The state has set out to designate five industrial parks in Denmark. These five areas will be specially designated zones where manufacturing companies are given priority - not just in terms of physical space, but also access to a state “red carpet”: faster case processing, a dedicated contact person in the Danish Business Authority, and the possibility for the state to take over certain approvals from municipalities if it speeds things up.

In other words, any growth-hungry municipality's dream. And therefore, many will be vying to be designated as one of the five industrial parks.

It is all tied together in a new law that aims to ensure that Denmark can continue to attract production in the future - both green, technological, and capital-intensive. For municipalities that are chosen, it can have a significant impact. Not just for business, but for employment, investments, and confidence in the future.

Lolland Municipality has already put itself forward. The plans for Femern Port & Industrial Park in Rødbyhavn are concrete. The area is based on the current tunnel element factory, which was built in connection with the Fehmarn Belt link. When the tunnel element production ends around 2027-28, the area and facilities can be converted into an industrial park in several phases. In total, it involves up to 750 hectares, of which 200 are already built and ready. The rest will be gradually developed. Phase 1 alone includes new quay facilities, heavy load areas, and access to 100,000 square meters of storage, with a total estimated investment of 350 million kroner. Phases 2 and 3 include the purchase of additional agricultural land and the expansion of road and port infrastructure, and the total construction budget is expected to exceed one billion kroner. The goal is to attract both state infrastructure projects, green industry, and defence-related production - all based on the port's unique location close to Germany and without urban limitations. 

Real competition

But that does not mean that an industrial park with a red carpet scheme will land on Lolland. There is competition, and it is real. Næstved and Vordingborg have submitted a joint bid for an industrial park in the area between Bårse and Tappernøje - also close to the motorway, port, and railway and with relatively short distances to both Copenhagen and Funen. And at the same time, so close to the Fehmarn connection that the Government can tick that box. For why build a fixed link costing 55 billion kroner (in 2020 figures) if you are not going to do what you can to support business development in the area? But the area affected by the Fehmarn connection is large and undoubtedly extends to South Zealand.

Holbæk Municipality has done the same and points to areas near Regstrup and Jyderup. Common to the competitors is that they are centrally located in Zealand and already have a certain business weight. This can be an advantage in terms of ensuring the rapid attraction of companies. They also have easier access to labour, which the state has emphasised as a key criterion.

While candidates from Eastern Denmark have slowly but surely emerged, Vesthimmerland Municipality has also entered the race for an industrial park. The municipality proposes that the park be located at Holme near Aars, where a large energy park with wind turbines, solar panels, and power-to-x facilities is already planned. The area offers both space, green electricity, and short distances to education and labour from cities like Aalborg, Hobro, and Viborg. The municipality sees the opportunity as a boost for the entire region - and as a way to link industrial production directly to green energy supply. Here too, they emphasise access to labour. And this brings us to one of the challenges that the industrial park on Lolland must be able to handle.

A prerequisite is missing

It is not enough to have space and power. There must also be people who can fill the companies - and preferably with the right skills. Qualified labour is not just part of the assessment; it is a prerequisite for an industrial park to have the desired effect. Here, they do not have the same strong position as several of the competitors. The area has a workforce, but it is not largely characterised by technicians, skilled workers, and operators. Educational opportunities in the region are limited, and the commuting distance to major educational cities is long. This means that Lolland Municipality - and the companies themselves - must be able to show how they will attract the necessary workforce. Can they collaborate with educational institutions outside the area? Are there plans for upskilling? Can they draw labour from Northern Germany, from Zealand, or entirely different places? It is not enough to point to a good location. There must be a plan for how to get hands and minds to keep up.

The answer to the lack of labour has always been the fixed link to Germany. Wages in Denmark are high compared to Germany, and the reduced travel time is significant. So there is no doubt that many Germans will be tempted to the southern part of East Denmark when the Fehmarn Belt connection is ready. Therefore, any talk of possible delays is also poison for the dream of an industrial park.

Many things at play

At the same time, it's worth noting that the designation will not only be a matter of technique. It will also be political. The state places emphasis on geographical distribution. The idea is not for all five industrial parks to end up in the most developed areas. The industrial parks should be a lever to create growth where there is none. And this immediately suggests that at least one of the industrial parks should be located in a region like Lolland-Falster. The question then is whether it will be here or in, for example, North Jutland. For the competition is not only regional - it is nationwide. Additionally, the political landscape can also play a role. The Minister for Business is named Morten Bødskov, and he is a Social Democrat. So are Holger Schou Rasmussen (Lolland), Mikael Smed (Vordingborg), Carsten Rasmussen (Næstved), and Christina Krzyrosiak Hansen (Holbæk). And even though there is a high likelihood that only one of the three bids will get an industrial park, one would misunderstand Christiansborg if one thinks that Lars Løkke (M) and Troels Lund Poulsen (V) will allow all industrial parks to land in Social Democratic strongholds. There are also Liberal strongholds, and that will also be considered. Here, Vesthimmerland stands strong with a council that is as blue as Copenhagen is red.

The deadline is 15 May

If Lolland is to make its mark, it requires submitting an application that is both realistic and ambitious. It must show that the area is ready, that there is local political support, that there is a willingness to act - and that there is a well-thought-out plan for workforce and regulatory processing. If successful, there are strong arguments for Lolland-Falster to be part of the next chapter in Denmark's industrial policy. Not just because the area needs development, but because an industrial park on Lolland can be a concrete and sustainable answer to what the state itself is asking for: green production, access to international connections, and better balance in Denmark.

The industrial park at Rødbyhavn will likely be realised, but the big question is whether it will become part of the red carpet scheme and thus give the entire area a fast track with all the advantages that come with it. There are indeed many factors in favour. The sheer number of prominent politicians passing through Rødbyhavn is a clear signal.

So far, there are three bids east of the Great Belt and only one to the west. It will certainly look different when the application deadline expires on 15 May. In Central and Western Jutland, it has been teasingly said in an opinion piece that their area could easily accommodate all five industrial parks.