Nidec expands with new factories in Serbia

The company wants to take part in the electrification of the European automotive industry. Automobile CO2 emission regulations are becoming increasingly stricter, demand is expanding for automotive motors and related products, and demand for high-efficiency brushless DC motors for home appliance businesses is also expected to increase. To take part in this the company plans to open new factories in Serbia to consolidate the Nidec Group’s production activities in the region, a press release reads. While the company’s multiple businesses will be operated at the same sites, to seek synergies by sharing the same production infrastructure and back-office, the new business bases will engage in, among other this, supplying products to the European market, while looking to design and develop products locally in Serbia. In the past, Nidec established an economic development zone in the city of Pinghu, China, for multiple businesses. That site is now home to 12 such companies that develop, produce, and sell their products, enhancing its presence in the Chinese market. Now, the company is looking to utilise its new business bases in Serbia as the core hub of Nidec’s European business. The company says that it will start the construction of its new, 60'000 square metre, factory in September 2021. Completion is currently scheduled for mid 2022 and once operations starts it will have a workforce of approximately 1'000 employees. The main focus of Nidec Electric Motor Serbia LLC will be the manufacturing and sale of automotive motors and related products. Nidec Elesys Europe LLC on the other hand will focus on the manufacturing and sales of automotive inverters and ECUs. Construction of this 36'000 square metre facility will start in September 2021 as well and is currently slated to be completed in mid 2022. Once completed it will have a workforce of 200 employees.