German automotive component manufacturer Dräxlmaier Group is ramping up its investment in Romania, securing up to 75 million euros from the European Bank for Reconstruction and Development (EBRD). This funding boost is aimed at expanding the production capacity of high voltage wiring and battery systems for electric vehicles within the local market.
With over 15,000 employees in Romania, Dräxlmaier is one of the country’s largest employers. The company has a significant presence with production units in five Romanian cities: Satu Mare, Pitești, Timișoara, Hunedoara, and Brașov. Since its entry into the Romanian market in 1993, Dräxlmaier has established a robust manufacturing footprint.
The strategic move aligns with Dräxlmaier’s 2021 announcement of a 200-million-euro investment plan over the next six years. A pivotal aspect of this plan includes an assembly system for hybrid vehicle batteries, targeting premium automotive brands from 2022 onwards.
The investment plan, which was unveiled at an event attended by local and county authorities, involves the construction of over 40,000 square meters of production areas, storage facilities, and office buildings. The project, to be executed in several phases, will significantly enhance the Timișoara site’s capability to produce electronic and high-voltage components.
This ongoing expansion in Romania is part of Dräxlmaier’s broader strategy to increase production capacity in its factories not only in Romania but also in Serbia, Macedonia, and Tunisia. This strategy also includes the construction of new production facilities in the Republic of Moldova, where the company has invested 75 million dollars and employs around 3,000 staff across two factories.
In 2016, Dräxlmaier attracted a 40-million-euro funding from EBRD through a hybrid bond issue, further emphasizing the robust financial collaboration between the company and the development bank, aimed at fostering regional growth and technological advancement in the automotive sector.
