Factory zones set to expand vertically in ‘largest’ investment in industrial infrastructure

Industrial zones will expand vertically as part of a €470 million government investment to create new spaces and improve accessibility, the Economy Minister said.

Silvio Schembri unveiled the eight-year programme on Thursday, describing it as “the largest ever investment in industrial infrastructure”.

Higher buildings will help expand industrial space by 600,000sq.m in existing zones without using up agricultural land, he said.

One of the projects will be a €100 million extension to the Life Sciences Park in the San Ġwann that will see the construction of five new blocks. One of the blocks will be connected to Mater Dei Hospital in a bid to attract bio-medical companies.

The new high-rise buildings will create 30,000sq.m of space adjacent to the existing blocks, which are operating at full capacity.

Artist's impression of how the extension of the Life Sciences Park (to the right) will look. The orange pathway is a connection to Mater Dei Hospital

But the investment will also see the redevelopment of the Kordin Business Incubation Centre in Paola into a multi-level modern building that will create 10,000sq.m of space.

Around €80 million will be invested in the Ħal Far industrial estate. Old factories will be demolished to make way for modern spaces for medium to large industries and create space for SMEs and light industry.

Another project will see the rehabilitation and transformation of the former waste dump in Luqa to offer space for small and medium sized industries. This site will also house the Valletta FC football ground.

An expansion of one of the airport taxiways will enable the aviation servicing industry to attract wide-bodied aircraft.

Schembri said the new structures and investment in improved common areas in industrial zones will create better work environments and help the country attract more foreign investment.

The expansion is necessary, he said, because the available industrial space today was only enough to satisfy 4% of the demand arising from projects approved or being considered by Malta Enterprise.

“Without this expansion, we risk severely curtailing economic growth and employment generation in coming years,” he said.

The investment programme will be managed by INDIS Malta, a government company, formerly known as Malta Industrial Parks (MIP). The ceremony also served to unveil a rebranding exercise of MIP, which has been tasked to provide industrial innovative solutions.

Prime Minister Robert Abela said the large investment, which was originally announced as part of the COVID-19 recovery package last summer, was government’s commitment to encourage economic growth and emerge from the pandemic stronger.

“We have supported jobs and businesses throughout the pandemic but this investment is also looking to the future,” he said.

Abela said the creation of industrial space will be done with respect to the environment by avoiding horizontal expansions and creating energy-efficient buildings.

INDIS CEO Karl Azzopardi said the agency currently managed 16 industrial estates, spread over 3 million sq.m of land, that housed some 900 operators.

“Of this land, 2.7 million sq.m is contracted, which is why we need to generate more industrial space in a timely manner to meet the demand of new projects approved by Malta Enterprise,” Azopardi said.

Asked about the medical cannabis industry, Schembri said that three companies were at an advanced stage of operation.

Malta legislated for the production of medical cannabis a couple of years ago to enable the burgeoning industry to set foot on the island.