EIB’s €15M Loan Backs PWO’s Serbian Automotive Plant and 550 Jobs by 2033

The 16,500-square-metre plant represents a total investment of €31 million, with €15 million coming from the EIB, €12 million from PWO Group and €4 million from the Serbian government.

A €15 million loan from the European Investment Bank (EIB) will help German automotive supplier PWO Group equip its new factory in Čačak, central Serbia, supporting an investment expected to create 550 jobs by 2033. The financing covers machinery for the facility, which opened last year and produces advanced lightweight metal components for the automotive industry, including parts used in electrified vehicles. For PWO, the investment brings production closer to major customers operating in Serbia and neighbouring countries, giving the group more capacity to serve a region it considers important for automotive growth.

A €31 Million Investment with Room to Grow

The 16,500-square-metre plant represents a total investment of €31 million, with €15 million coming from the EIB, €12 million from PWO Group and €4 million from the Serbian government. Its role extends beyond manufacturing: the Čačak location also houses a Shared Service Centre supporting PWO's European operations and has space for potential production expansion, giving the company a base that can accommodate further growth.

PWO Group Chief Executive Officer Carlo Lazzarini described Eastern Europe as one of the automotive industry's most important growth regions, pointing to the substantial operations established by the company's customers in Serbia and nearby countries. These customers include vehicle manufacturers, known as Original Equipment Manufacturers, and Tier 1 suppliers that supply manufacturers directly. Lazzarini said the EIB's backing would help PWO build capacity faster and more efficiently, creating jobs and developing capabilities as Serbia becomes a significant pillar of its European business.

Advanced Manufacturing Connects Serbia to European Supply Chains

Production at Čačak will use advanced manufacturing technologies for cold-formed metal components, strengthening Serbia's links with European industrial supply chains and supporting the competitiveness of the automotive sector across Europe. The investment is also expected to bring technology transfer and business opportunities for local suppliers and service providers, extending its economic contribution beyond the factory's own workforce.

EIB Director for Enlargement and Neighbourhood Richard Amor said the financing supports new jobs, technology transfer and sustainable economic growth in Serbia, alongside greater competitiveness and resilience for Europe's automotive industry. He highlighted the contribution that advanced lightweight components and systems can make to vehicle safety, efficiency and electrification, connecting the factory's production with some of the sector's central engineering priorities.

A First for PWO and a Deeper EU–Serbia Partnership

The loan marks PWO Group's first financing from an international financial institution and reflects the EIB's support for EU companies expanding their operations and global presence. The project also supports foreign direct investment from the European Union into Serbia, reinforcing economic ties, market integration and industrial cooperation. The EIB has invested more than €3.4 billion in Serbia's private sector to date, backing innovation, employment and business growth.

Julian Vassallo, Deputy Head of the European Union Delegation to Serbia, linked the investment to Serbia's sustainable economic growth and closer integration with the EU. He said support for advanced manufacturing, innovation and quality jobs helps the country strengthen its position in European automotive supply chains, attract technology and expertise, and create opportunities for workers and local businesses. For Čačak, those benefits are tied to a concrete industrial project, with machinery financing supporting a factory whose employment plans stretch through 2033.