CACAK, Serbia—German elastomer and metal auto parts manufacturer Vorwerk Autotec has begun constructing a plant to produce car suspension and sealing components in Serbia.
Wuppertal, Germany-based Vorwerk Autotec, which plans an overall investment of $50 million in the development project, held an official ceremony at the chosen site at the Preljina industrial zone in Cacak, central Serbia late in July. There to mark the formal launch of building works for the new plant were Serbian state President Aleksandar Vucic and Vorwerk's CEO Juergen Moeller.
Vucic told those attending that "this factory will not only ensure the means of living for 1,000 workers and their families," but it would be important for the whole of the surrounding Moravica district and its small communities.
Vorwerk Autotec stated in a letter of intent issued in March that it expects to produce a range of molded rubber- and plastic-based bushings and sealing products for leading German vehicle builders.
Customers listed in the letter of intent by Vorwerk Autotec included Audi, BMW, Mini, Volkswagen and Porsche.
In an initial construction stage, the company intends to complete production buildings covering an area of more than 430,500 square feet. A final project phase will see the green field plant size grow to nearly 700,000 square feet on the 15-acre site.
Last year, the company was reported to be seeking a suitable site for a plant in Serbia. It was said to be considering either locating it in the Loznica area, close to the Bosnian border or close to Kraljevo in central Serbia.
Vorwerk Autotec was established in 2002 as a spin off business from the old, established family-owned German industrial corporation Vorwerk & Sohn of Wuppertal. The German firm has a string of other production plants in France, Slovakia, Poland and Germany as well as in China, India, Mexico and the U.S.