The government earlier this year had presented sectoral plans for so-called economic activity zones, which set out development of specific areas designated for companies and businesses.

A zone in Dudelange--also known as Koibestrachen--was destined to be the home of companies active in the health tech and ICT domain but will now be used for something else.

“Since other sites are currently in full development in terms of creating synergies in the field of health technologies, due to the agglomeration of various major players in this field, the Koibestrachen site is currently no longer targeted as a priority for the establishment of companies from this field,” economy minister Franz Fayot and minister for spatial planning Claude Turmes said in answer to a parliamentary question.

Fayot in January inaugurated a biotech incubator at the House of Biohealth in Belval, which aims to host up to eight spin-offs and start-ups in the future, benefiting from its proximity to the University of Luxembourg, the Luxembourg Institute of Health and the Luxembourg Institute of Science and Technology. 

There are around 136 health tech companies already present in Luxembourg, employing around 1,900 people, according to data by the HealthTech Cluster. More than half of the companies are located outside of Luxemburg City, including in Esch-sur-Alzette but also Capellen, Remich, Grevenmacher, Echternach, Mersch, Redange-sur-Attert, Diekirch, Wiltz and Clervaux.

Around half of the companies (63) are active in diagnostics and medical devices, with 34 in biopharma and 39 in other health technologies. Out of all of the businesses present, a growing number has a digital focus (39 in 2020 compared to 11 in 2011).

The site will more generally be available to public and applied research activities based on circular economy and “smart city” ideals. Information and communication technology companies will still play a role.

The government has charged an external office with organising an urban planning process involving the local administration as well as interested players. A first development phase is expected to begin in the next two to three years, the ministers said.

“The planning of the site being currently in its infancy, there is at this stage no concrete implementation project,” Fayot and Turmes said.