Brose, the world’s fourth-largest family-owned automotive supplier, is to set up a new manufacturing plant in Serbia.
In the presence of German Federal Minister for Economic Affairs and Energy Peter Altmaier and Serbian President Aleksandar Vucic, Brose signed a settlement agreement on October 22 in Belgrade. The automotive supplier is investing 180 million euros (Rs 1,420 crore) in the coming years and will create 1,100 jobs in production, development and administration. This new location, north of Belgrade, strengthens the competitiveness of the Brose Group.
Panevo will be the home of a production site for electric motors and drives as part of a first stage of expansion to be completed by 2021. “We are systematically expanding our global development and production capacities with the new Brose plant in Serbia,” said Thomas Spangler, Chief Technology Officer Brose Group, at the signing ceremony.
Spangler emphasised the good collaboration with the government and the authorities: “The support has been excellent thus far and marked by quick actions, constructive discussions and pragmatic solutions. I am convinced that this new Brose location will offer good, long-term prospects for our family-owned company and our future employees here in Serbia.”
Construction work on the 220,000 square metre site is scheduled to begin this year. The start of production of drives for cooling fan modules is set for summer 2021, followed by motors for steering systems and oil pumps.
“We are delighted to have the international automotive supplier Brose settle here. The family-owned company will offer 1,100 people an attractive workplace in production and even development and administration. This will have a very positive impact on Panevo and make our country interesting for other companies,” said Serbian President Vucic.
The investments are part of a program Brose launched to continue achieving further growth worldwide. Brose develops and produces mechatronic systems for vehicle doors and seats as well as electric motors, drives and electronics, among others for steering, brakes, transmissions and engine cooling. Approximately 26,000 employees at 63 locations in 23 countries generate turnover of 6.3 billion euros (Rs 49,681 crore). Worldwide, every second new vehicle is equipped with at least one Brose product.