Automotive electrical and electronic parts specialist Yura Corporation is investing nearly €20m to set up a new components manufacturing plant in Albania.
This year, the South Korean group plans to spend €6.5m on launching the first stage of the operation on a 4.9ha site leased for one euro near Fier in the south west of the Balkan state.
Group offshoot Yura Tech, which makes auto ignition parts and sensors for electric vehicles, will hire an initial 600-strong workforce for the facility, according to Albania's Economy Ministry.
In a second development phase, Yura Corp. intends to invest a further €13m on expanding the plant, gradually growing the workforce over several years to 1,100. Yura's long-term plan for Albania foresees the construction of two more factories employing a total of 4,000 people, a government statement announced.
Seongnam, South Korea-based Yura Corp. sealed the investment deal last month when Yura Tech representative Lukas Nam signed an agreement on the leased site with Albania's Economy and Finance Minister Anila Denaj.
“After surveying other countries in the region, we chose Albania due to its skilled workforce, competitive costs, geographical position and the incentives offered by the Albanian government and support from the Albanian Investment Development Agency,” commented Nam.
The Economy Minister said foreign investment is “a major priority for the government” and it is committed to encouraging foreign and domestic investors “through legal and policy (business) incentives”.
“I am confident this will encourage other international corporations to shift their attention to Albania,” said Ms Denaj.
Yura Corp. already runs other production units in Europe, including Slovakia, Poland, Russia, and Serbia where it has facilities in Rača, Niš and Leskovac in Serbia. In addition, it has manufacturing in North Africa, Mexico, Vietnam and eight units across China.
The company's factories make a wide range of vehicle engine and control components including cable and wiring harness, electronic control modules, spark plugs and connectors.
Yura group customers number several global car manufacturers including Audi, Mercedes-Benz and the Korean companies Hyundai and Kia.