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German Giant Cuts 170 Jobs in Slovenia, Moves Production to Bosnia and Herzegovina

03/25/2024

German Giant Cuts 170 Jobs in Slovenia, Moves Production to Bosnia and Herzegovina

They are optimizing production and relocating the starter production program to Bosnia and Herzegovina

The company Mahle Electric Drives Slovenija, which is part of the German group Mahle and employs around 1,800 people in Slovenia, will reduce the number of employees in Slovenia by 170 this year.

As they explained, they are optimizing production and relocating the starter production program to Bosnia and Herzegovina, to the factory in Aleksandrovac near Banja Luka, reports BiznisInfo.ba.

Mahle Electric Drives Slovenija is the former Letrika, which has operated as part of the German Mahle group since 2014. The mentioned company had previously also adjusted production in Slovenia, and the number of employees was already reduced in 2020. Similar to Mahle Electric Drives Slovenija, other companies are also relocating “unprofitable” production to BiH, according to the Slovenian 24ur.com.

At Mahle Electric Drives Slovenija, they are increasingly focusing on products for electric mobility, such as motors for powering electric vehicles.

– We have developed a product that competes in the world's largest market. Another nomination would be a great victory, not only for the location in Šempeter near Gorica, but also for the region and all of Slovenia – Uroš Rutar from the Šempeter company said in an interview with Delo.

In that area, they are planning further growth, but in Slovenia they are limited by both space and employees.

– Our biggest customer is the tractor industry. We are very successful in industrial operations. If you buy a European or North American tractor today, there is an 85 percent chance that two key products will be produced here – Rutar added.

BiznisInfo.ba previously wrote that the company Mahle built a large factory in Aleksandrovac. The works were completed a few months ago. This will be one of the largest production facilities in the automotive industry in Bosnia and Herzegovina.

The area of the facility is an impressive 26,040 square meters, and it contains modern production infrastructure and technologically advanced resources.

The mayor of the municipality of Laktaši, Miroslav Bojić, previously said that this is an investment of almost 20 million euros.

At the time, he said that the German company “Mahle” has been operating in the territory of the municipality of Laktaši for many years, and that more than 700 workers should be employed in the new factory, who should also have better working conditions.

Source: biznisinfo.ba