(Ekonomist) Automobile cluster of Serbia – manufacturer of car parts joined forces

Source: Ekonomist magazin Sunday, 02.08.2009. 19:07
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The group of Serbia`s automobile industry will participate in an international project whose aim is forming of the network of manufacturers and institutions in southeastern Europe that will stimulate development and innovations in production of car parts.

According to the words of the CEO of the Automobile Cluster of Serbia, Igor Vijatov, this project will connect manufacturers of car parts, research centers and universities from Italy, Austria, Hungary, Romania, Bulgaria, Croatia, Slovenia, Slovakia and Serbia.


The project has been approved by the European Commission, its realization will last for two years, and EU will provide 1.4m EUR for that purpose. Realization of the project has commenced in Slovakian town of Trnava, and the Automobile Cluster of Serbia, which gathers 35 manufacturers of car parts and five institutions, has taken part in that project. The aim of the project is to stimulate research and inventions in production of car parts, which has almost been discontinued in certain countries with the arrival of big automobile manufacturers that have their own development centers. That happened in Slovakia following the arrival of Kia and Volkswagen.

- Within the scope of the joint project, partners from nine European countries will give suggestions for introduction of new car parts, which will then be offered to large manufacturers of vehicles as our original products - says Vijatov.

Network of manufacturers

By the way, the Automobile Cluster of Serbia is the network of Serbian enterprises and institutions that deal with production of car parts and equipment for automobile industry. The network was founded in November 2005 with the support from the Government of Republic of Serbia and German Organization for Technical Cooperation.

The aim of the cluster is to provide support to its members in the process of strengthening competitiveness and achieving profitable position within the chain of suppliers of international automobile manufacturers, as well as to have indirect influence on improvement of economic situation in the branch.

Cooperation has also been established with Turkish association of manufacturers of car parts and components, which gathers over 260 Turkish companies. Joint conclusion is that the Free Trade Agreement with Russian Federation represents an exceptional potential for both Serbian and Turkish companies that currently pay the duty of 30% when they export their products to Russian market.

Who are the candidates?

Kragujevac-based "21. oktobar" deals with production of light equipment, heat exchangers, cog wheels, bumpers and plastic parts, indicator lights, warning and other lights, metal-processing tools, radiators, heaters, condensers, etc. Čačak`s "Bin metal" produces different types of springs, Mladenovac-based "Cobest" produces brakes and related products, while "Exit" from Prokuplje will offer innovations in production of exhaust systems and fuel tanks.

Bečej-based "Fadip" produces hoses for hydraulic oils and fuels.

Rubber-technical goods are produced by Pirot-based "Tigar", "Interseling" from Inđija and Kruševac`s"Trayal", which also produces pneumatics for automobiles and trucks, just like the company from Pirot.

Foundries in Kikinda and Topola have classical product porftolio, while Kragujevac-based "Kovačnica" (Forge), which worked for automobile industry for decades, is going to offer both classical and new product portfolio.

The President of the Regional Chamber of Commerce in Kragujevac, Dušan Puača, says that such and similar clusters are always welcome, but that much effort is needed for them to be maximally exploited.

Development of automobile industry was deccelerated in the 1990`s because of the political and economic situation and problems in the country. The market collapsed or became unavailble because of the sanctions. Production capacities dropped by over 10%, and there were no investments.

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