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Global plastic auto parts producer Novares plans to invest €6m to extend the capacity of its production site in the Zrenjanin Free Zone in northern Serbia.
The French group, formerly known as Mécaplast – Key Plastics, launched a plant at the site north of the capital Belgrade in 2012 and now employs a 170-strong workforce there. Its local output was originally aimed at supplying Fiat Serbia, which is located in the Kragujevac Free Zone, which now accounts for most parts production.
Today, the plant also serves the French automotive group PSA in Slovakia and Iran, Dacia – Renault in Romania and the Jaguar Land Rover group in Austria.
Rising demand has prompted the Paris-based moulded component supplier expects to add a new 3,200m2 production hall costing around €2.2m with the remains of the project investment going on new moulding machinery and other equipment.
Initially, Novares will employ a further 25 workers at Zrenjanin and expects to have 280 by 2020, according to Serb media reports.
Novares is to take advantage of additional development space in the Zrenjanin zone’s newly open East business complex. The firm’s new facility will provide it with an additional site of more than two hectares of land.
The Serb free trade zone not only enables companies to import and export freely, but exempts it from payment of taxes and customs duties and allows it free profit transfer. Resident companies are reported to be able to save up to 40% of their business costs.
Novares group is in 21 countries and operates 42 production plants, five technical centres, seven skill centres and 17 customer service units worldwide. In 2017, it attracted revenue worth around €1.2 billion.