Taking shape in Kragujevac, Serbia’s fourth largest city, the facility is due to occupy 5,500m2, of which 4,600m2 will provide production space – almost double the space of the firm’s present site.
A second building phase is set to expand the plant by a further 3,500m2, Serb media reports quote Slobodan Radović, director of Teknia Serbia as predicting.
Today, Teknia operates at rented premises of the former ‘21st October’ Zastava car manufacturing plant in Kragujevac. The Madrid-based parts maker arrived in Serbia in 2014 when it bought the local Promotor-Irva plastic and metal vehicle parts business.
Teknia, which planned to build a Serb plant since 2016, was in lengthy but finally unsuccessful talks to find a suitable site with the city authority. The firm eventually bought its new Kragujevac site in September 2017.
The plant is to be equipped with “state-of-the-art production technologies” and Teknia will increase its current 75-strong workforce to around 120 when the unit is complete, according to Radović.
With the local expansion, he expects sales at the Serb offshoot, Teknia KG to grow four to five times by 2020 and production to rise from €5m this year to €20m within three years. Teknia works with “the majority of automotive companies in Serbia” as well as others abroad. Current customers include the global car manufacturers Fiat, PSA Peugeot Citroën and Opel.
Radović said Teknia “has been contacted by interested buyers” and has agreed to cooperation with some, including Lear and the French components supplier Faurecia. “We are also negotiating with the Chinese car component manufacturer Yangfeng, whose factory will be located next to ours here in Kragujevac”, the executive added reported
Teknia Group runs production plants in Poland, Romania, the Czech Republic, Turkey, Morocco, Mexico, the US and Brazil as well as in Spain. Last year, it recorded a net profit of €6.3m on annual sales worth €370.6m.