Following in the footsteps of German automotive company ZF, two more investors from Germany are expected to arrive to Pancevo, Vojvodina later this year and in early 2020, Sasa Pavlov, Mayor of Pancevo announced on Wednesday.
In the first stage of investment, ZF invested nearly €100 million to build a factory that manufacturers car components and has recently announced new investments in the amount of around €60 million, according to the mayor.
The second stage of investment involves the expansion of the production to an additional 30,000 square meters of space, along with an establishment of a research and development center in the city’s North Business Zone.
In the past years, the major task of the local self-government has been to equip the North Business Zone, in order to increase the competitiveness of the City of Pancevo, when it comes to attracting foreign direct investments, and it has come true, Pavlov said.
ZF’s construction of the R&D center is a guarantee that the company has come to Serbia for the long-haul and to establish leading-edge processes, he added. In the first two phases of investments, over a thousand people will be hired in the Pancevo facility, while talks about a third phase are underway with the German automotive investor.
The city will have the pleasure of announcing the arrival of yet another investor later this year, and other at the beginning of 2020, Pavlov said. It is a substantial foreign direct investment with a high level of investment, he explained while refusing to add any more details. Further, the city authorities are currently working on the business zone expansion to include another 25 hectares of land to a total of 100 hectares.
ZF, which invested in the construction of an electric vehicle parts factory in Pancevo, has a global workforce of 146,000 in 40 countries and recorded a sales of €36.4 billion in 2017. The company invests over six percent of its sales in research and development annually, specifically for the development of efficient and electric drivelines.