June 21 (SeeNews) - Japanese auto cable and wires manufacturer Fujikura will invest 3.2 million euro ($3.59 million) in a factory in Moldova's Chisinau free economic zone, the country's economy ministry announced on Monday.
The company was selected as a resident of the free economic zone Expo-Business-Chisinau following a public competition, the economy ministry said in a press release.
The plant is set to begin production in the third quarter of 2016, it added.
During its first year of operations, the company will create about 700 jobs and will end up hiring 900 people once it starts operating at full capacity. Its entire output will be exported to enterprise customers in the European Union.
Fujikura was founded in 1885 with headquarters in Tokyo and has 54,000 employees worldwide.
The Expo-Business-Chisinau free economic zone was created in 1995 and currently has 40 residents involved mostly in industrial production of export goods, construction materials, wines, cognacs and sorting operations, data posted on its website showed.
Moldova's free economic zones have become attractive for automotive components makers in the recent years.
Earlier this month, Austrian cable and wire manufacturer Gebauer&Griller Kabelwerke said that it is contemplating a 10 million euro investment in a cable factory in Moldova. Gebauer&Griller already has a 9,200 sq m cable plant in Moldova's free economic zone Balti (ZEL Balti), following an investment of 18 million euro in 2012, partly financed through a loan from the European Bank for Reconstruction and Development (EBRD).
In April, German auto wiring systems maker Leoni said it might move part of its Romanian production to countries with lower labour costs such as Moldova or Ukraine.
In February, Japanese car parts maker Sumitomo and German automotive components maker Draexlmaier said they will build two electric cable systems plants in ZEL Balti following investments of 27 million euro and 31 million euro, respectively. Draexlmaier already operates two auto cable systems plants in the northern town of Balti.
($=0.889 euro)