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German automotive co Draexlmaier to build 31 mln euro plant in Moldova

German automotive co Draexlmaier to build 31 mln euro plant in Moldova FEZ Balti, Moldova Author (FEZ Balti) License: all rights reserved.

CHISINAU (Moldova), February 29 (SeeNews) - German automotive components maker Draexlmaier will build a 31 million euro ($34.1 million) plant in the Balti free economic zone in Moldova, its third in the country, the zone's administrator said on Monday.

The company plans to start production in the new plant in 2017, Marin Ciobanu said in a press release after meeting with company officials.

The project envisages the construction of a 27,000 sq m greenfield production facility for electrical cable systems for cars and offices. The plant will employ some 2,500.

Draexlmaier operates two auto cable systems plants in the northern town of Balti. The first one was built in 2009, and the second one opened in 2011 following a 30 million euro investment.  Some 3,000 employees work in the two plants.

In 2015, the company contributed some 400 million lei ($20 million/18.4 million euro) to the region's cash inflows, including more than 210 million lei in salaries and 80 million in taxes, the press release added.

Draexlmaier, founded in 1958, currently has more than 60 factories in 20 countries and a staff of 55,000.

Elsewhere in Southeastern Europe (SEE), the company is present in Moldova's neighbour Romania, in Serbia and in Macedonia.

FEZ Balti was constituted on May 26, 2010 and is the seventh free economic zone in Moldova. Total volume of direct investment in the area since its establishment until January 1, 2015 amounted to $44.5 million, according to data of Moldova's economy ministry.

(1 euro = 22.1179 Moldovan lei)