Macedonia grows attractive for the automobile industry.
Macedonia is becoming more attractive to foreign investors from companies from the automobile industry. The recent examples of investments, especially in the economic zone Bunardzik, as well as the announcements for entry of other such companies, show that the industrial structure in Macedonia is changing. If the country was once known for the textile factories, their spot is now taken over by the factories that manufacture car parts, such as "Johnson Controls" and "Johnson Matthey" and as of recently there is an announcement for start of investments of Indian company "Maderson" which will manufacture rear-view mirrors for cars. As a reminder, the foundation of US Company "Kemet Electronics," which announced that it would be a factory for electronic condensers. According to the director of the Agency for Foreign Investments Viktor Mizo, the investors are targeted according to analyses for sectors that are most suitable for the Macedonian market.
"The current interest of companies from the automobile industry is mainly due to the fact that it is a sector which is mobile, spreads fast and competitive destinations are therefore looked for. Macedonia is attractive for this industry due to the appropriate geographic location that enables companies to distribute in Central Europe or the neighborhood, where they already have their own factories, because in two or three days they are able to transport parts to the final destination," Mizo explains.
At the moment, home manufacturers export car parts to the markets of the former Yugoslav republics, Italy, Germany and Austria. Prime Minster Nikola Gruevski has recently said that the car industry is one of the sectors that the Government is going to focus on in the future to attract more investors. According to Gruevski, it is good that the car industry is showing signs of recovery although it has not yet fully recovered. In his view, next year more car companies will start considering new investments and Macedonia should be ready to attract them.
Macedonia has a history of automotive components manufacturing which started in the 1960s initially to supply the former Yugoslavian automotive producer Zastava.
Today, the automotive components sector is compiled of a number of companies. Quality products being produced in these factories, in compliance with automotive standards TS 16949 and ISO 9001 assures that the production in the Macedonian automotive components sector is exported. The country is particularly suitable as a location for the manufacture of high value to weight and labor-intensive products such as safety systems (seat belts, airbags), electronics (controllers, sensors), precision engineered and plastic products, aluminum and zinc die-casting, and grey iron casting components. Macedonia's closeness to the rapidly growing automotive manufacturing base in Central and Eastern Europe and Turkey, which have become a regional superpower in the automotive industry, makes it an ideal location. The geographical proximity to these markets allows low distribution costs and "just-in-time" product delivery from Macedonia.
Two U.S. and one German company have passed internal decisions over the construction of factories for automotive parts or cables, set to be located in Tetovo, Struga and Skopje, announced Prime Minister Nikola Gruevski.
"The three factories will open 4,000 jobs, of which 2,000 in Tetovo, about 1,500 in Struga, and up to 500 in the one near Skopje", said Gruevski.
According to him, Macedonia has already become increasingly attractive for foreign investors, since business conditions are improving, but also due to the state's aggressive approach at the foreign market with regards to its promotion.
Gruevski stressed a call for construction of a Kavadarci-based factory for automotive cables, employing 4,000 people over a period of several years, has already been released.
"Besides the announcement of a Belgian company that will manufacture buses in the free economic zone near Skopje, along with the announcement of 2,200 new jobs in a new mall in Karpos municipality, there are also announcements by other companies, including a Japanese-Italian investment of a plant for automotive parts", he added.
He said a British company has already passed an internal decision over the construction of a plant for automotive parts near Skopje, an investment worth about EUR 60 million, along with an announcement for construction of a plant in the chemical industry near Struga.
Gruevski emphasized that Macedonia might have the lowest taxes and most favorable conditions, but this would not reach the investors without proper promotion.
"We are doing this through international media, continual campaigns over the benefits of investing in Macedonia, promoters in about 30 countries, road-shows of government teams in numerous countries, as well as series of other activities involving embassies, diplomatic and consular offices, etc", underlined PM Gruevski.
|Printer friendly Cite/link Email Feedback|
|Publication:||Macedonian Business Monthly|
|Date:||Mar 1, 2012|
|Previous Article:||Macedonia and Serbia sign agreements on food safety and phytosanitary cooperation.|
|Next Article:||Double taxation avoidance for raising investments: the double taxation avoidance is one way to promote the economic collaboration between two...|