International automotive parts manufacturer Adient group has begun constructing a new €20m plant to produce car seat components at Loznica in western Serbia.
Serbian president Aleksandar Vučić was present last week (31 May), for a ceremonial ground breaking event to mark the start of the company’s latest project at the site close to the Bosnia Herzegovina border.
Earlier this year, the US-based group signed a deal with the local Serb municipality providing Adient with a 4.3 hectare plot of land for the new facility located in Loznica’s Sepak Industrial Zone.
The 13,000m2 plant is scheduled to be completed by the end of this year and will initially create 700 jobs. When it is fully operational at the end of 2020, the workforce is expected to more than double to 1,500 employees, according to regional media reports. The project received several million euros in support from the Serbian government.
Production at the plant will evolve from initially turning out car seat covers to later manufacture of complete seating systems.
Adient, formerly Johnson Controls, already operates one other vehicle seating production plant in the country further south at Kragujevac which it opened in 2013.
Following the ground breaking ceremony, President Vučić said that he welcomed the firm’s investment in the country which will allow local government to invest more in infrastructure through higher tax revenues.
“I hope that this will not be the end of Adient’s investments in Serbia,” said the Serb head of state.
Plymouth, Michigan-based Adient is a global leader in the manufacture of vehicle cockpits, instrument panels, floor consoles, door panels and overhead systems as well as seating products.
In southeast Europe, the company runs five plants in Romania, three in Slovenia, two in North Macedonia as well as the existing unit in Serbia. Today, Adient, which produces 25 million seats annually, employs 85,000 workers overall in 238 facilities in 34 countries.