Business news

Hidria to build EUR 40m R&D and production facility

Idrija, 08 September (STA) - Industrial conglomerate Hidria will start building a EUR 40 million high-tech centre for the development and production of key components for electric motors for hybrid and electric vehicles next year. The new centre is slated to open in the middle of 2023, and will first service car manufacturers BMW and Mercedes.

Hidria, a leading supplier of stationary and rotary parts for electric motors for the global automotive industry, needs new production facilities after it has concluded a number of long-term deals with several leading global vehicle manufacturers.

The groundbreaking ceremony took place on Wednesday in the presence of Prime Minister Janez Janša during the government visit to the western region of Goriška.

The centre will manufacture products whose added value per employee is expected to considerably top EUR 100,000 as the target sales reach EUR 100 million.

It will cover an area of almost two football fields, or 15,000 square metres, and gradually employ 100 highly-educated workers.

The Slovenian automotive cluster, including Hidria as a key part of this, is one of the most vital segments of Slovenia's economy, Janša said at today's ceremony, noting that the industry's contribution to the entire economy and export was huge.

"European automotive industry and mobility would be practically non-existent" without Slovenia's contribution, he said, adding that "the future of Slovenia's faster development lies in such investments".

The investment is the first in a series of projects leading to GREen MObility (GREMO), an innovation green mobility platform that Slovenian suppliers of automotive companies united in the Automotive Cluster of Slovenia are working on.

GREMO is the Automotive Cluster's planned partnership with the government under the national recovery and resilience plan. According to Janša, details of the cooperation will be worked out in October.

As part of GREMO, more than EUR 3 billion will be invested in the coming five years to transform the sector of automotive suppliers and foster future growth.

Slovenia's suppliers of the automotive industry account for over 10% of the country's GDP and for over 20% of exports, said Hidria, which celebrates 50 years this year.