November 16 (SeeNews) - MAHLE Electric Drives Bosnia, a Bosnian subsidiary of German car parts manufacturer MAHLE, signed a contract with local company Baupartner for the construction of a factory in Laktasi, Baupartner said.
The factory will spread on a total area of 65,000 sq m, including 30,000 sq m of closed space, Baupartner said in a press release on Tuesday. Laktasi is located in the Serb Republic - one of the two autonomous entities making Bosnia. The other one is the Federation.
The Laktasi municipality said in April that MAHLE Electric Drives Bosnia will invest 20 million euro ($20.1 million) in the new factory, which is expected to employ over 700 people.
MAHLE Electric Drives Bosnia already operates a car parts factory in Laktasi, employing 424 people, according to MAHLE's website.
($ = 0.9605 euro)