The Serbian government approved a memorandum of understanding (MoU) with Minth Holdings Limited, a Chinese automotive parts manufacturer, paving the way for an €870 million investment, according to European media.
The decade-long project will create 2,220 jobs. Investments will be directed to a variety of new facilities for the automotive and related industries, including electric vehicles, buses, photovoltaic components, and building materials.
The planned investments reflect Serbia’s growing attractiveness as a location for international manufacturing and its strategic efforts to integrate into the growing electric vehicle (EV) market.
Minth Holdings currently operates production facilities in Loznica and Šabac, Serbia. Minth Automotive Europe recently received a government subsidy of €23.5 million to expand its operations. The subsidy is earmarked for the second phase of construction of an automotive components plant in Loznica.
The International Finance Corporation (IFC) is considering a loan to Minth Group Limited to support the expansion of operations in Serbia and Poland. According to IFC, the overall €598 million expansion project is aimed at enhancing Minth’s capabilities in the production of casings for EV batteries.
In Serbia, Minth’s enlargement plans include the expansion of Minth Automotive Europe DOO’s (MAE) existing facilities in Loznica for the production of battery casings for EVs. In addition, the enlargement will support the construction of three new production lines in Šabac.
