China’s Xingyu Automotive Lighting System is preparing to invest €50m in Europe to build a vehicle lighting parts plant in Serbia.
The company recently signed a memorandum of understanding with the Serbian government, agreeing to relocate part of its Chinese production to the new facility in the city of Niš, southern Serbia.
Xingyu, China’s biggest auto lighting components producer, plans to start construction of the new plant on a green field site during 2020 and expects the project will create 1,000 jobs in the country.
Products manufactured at the Serb plant, which will form the greater part of the LED lighting specialist’s supply to European customers, will be exported to a growing number of car manufacturers it serves in Germany, France and Slovakia.
At the official ceremony to mark the deal staged in Niš last month (May), both Goran Knezevic, the Serbian Economy Minister and the city’s mayor Darko Bulatović signed the MoU agreement, along with Mrs Xiao Ping Zhou, president of the Xingyu company.
“This investment will give a new impetus to Serbia’s economy and, once production is launched will also benefit our exports,” said the Minister who added that Xingyu will also bring new technologies to the automotive industry.
Xingyu is planning to establish cooperation with major carmakers including Volkswagen, Audi, Peugeot, Renault, BMW and Opel.
Negotiations and the decision making process, including four separate visits to Niš between last October and last month, took the parties almost a year.
Xingyu Europe already has European operations in the cities of Wolfsburg, Erfurt and Bissendorf in the German market.
Based in Jiangsu province in eastern China, Xingyu employs a total workforce of close to 5,000 at its five production plants in Japan, Germany and China. Among its global automotive sector clientele the firm counts a number of Chinese manufacturers including Chery, GAC, FAW-Car and GLEE.