April 2 (SeeNews) - Germany's ZF Friedrichshafen, or ZF Group, plans to invest a total of 85 million euro ($104.8 million) in the construction of an electric vehicle parts factory in Pancevo, in northern Serbia, the city government has said.
ZF Friedrichshafen intends to invest 40 million euro in the project in 2019, 25 million euro in 2020 and 20 million euro in 2021, the city government said in a statement on Friday.
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The factory, with a footprint of 25,000 square metres, will have a workforce of 540 employees and will be constructed on a land plot of 10.8 hectares, ZF Friedrichshafen said in a letter of intent sent to the Pancevo city government.
In the first phase of the development of the factory, the German company plans to produce electric shafts for premium original equipment manufacturers (OEMs), E-Mobility electric motors, electronic and mechatronic gearboxes, microswitches and printed circuit boards (PCBs).
ZF Friedrichshafen intends to start the second phase of the development of the factory in 2022 when it will start the construction of a production unit covering another 25,000 square metres, lifting the number of employees to between 800 and 1,000, the company said in the letter of intent.
The company has a global workforce of 146,000 with approximately 230 locations in some 40 countries. In 2017, it recorded sales of 36.4 billion euro.
($ = 0.8111 euro)