The European Investment Bank (EIB) is providing a €15 million loan to German automotive supplier PWO Group to finance machinery for its recently opened manufacturing facility in Čačak, central Serbia.
The 16,500-square-metre plant, which opened last year, produces advanced lightweight metal components for the automotive industry, including parts for electrified vehicles. The facility also houses a Shared Service Centre supporting PWO Group’s European operations and has further potential for expanding production.
The total investment in the Čačak facility amounts to €31 million. Alongside the EIB financing, €12 million is being provided by PWO Group itself and €4 million by the Serbian government. The project is expected to create up to 550 jobs by 2033, while also generating opportunities for local suppliers and service providers.
According to EIB Director for Enlargement and Neighbourhood Richard Amor, the investment will support technology transfer, job creation and sustainable economic growth in Serbia, while contributing to the competitiveness of Europe’s automotive industry. The advanced lightweight components produced at the facility are also expected to contribute to greater vehicle efficiency, safety and electrification.
PWO Group CEO Carlo Lazzarini said the Čačak facility would increase the company’s production capacity in Eastern Europe, which he described as one of the automotive industry’s key growth regions. Major Tier 1 suppliers and automotive manufacturers already have significant operations in Serbia and neighbouring countries, making a local production presence increasingly important for PWO Group.
The project will use advanced manufacturing technologies for cold-formed metal components, helping deepen Serbia’s participation in European industrial value chains. The investment is also expected to facilitate the transfer of technology and expertise and create new opportunities for Serbian companies working with the automotive sector.
The EU Delegation to Serbia said investments in advanced manufacturing, innovation and quality employment are important for Serbia’s sustainable economic development and closer integration with the European Union. The project is also being presented as an example of growing economic and industrial cooperation between Serbia and the EU.
The financing marks PWO Group’s first loan from an international financial institution. The EIB said it has invested more than €3.4 billion in Serbia’s private sector to date, supporting innovation, business growth and job creation.
