Agena Technology d.o.o., which produces motor parts for international majors, will expand output in Serbia in time for a contract with Ford Motor Co. (F:US)
Agena, fully-owned by the U.K.-based Albon Engineering & Manufacturing Plc., will invest 4 million euros ($4.9 million) in a new 10,000 square-meter plant in Pecinci, a village 30- kilometers north of Belgrade, and 5 million euros in equipment needed to start the production of engine parts ahead of mid-2013 when it begins shipments to Ford in a contract worth $56 million a year, the company’s general manager Ismet Grebovic said.
“We have focused on the U.S. market, where the crisis is over and which is going through an expansion,” Grebovic told Bloomberg News in an interview in Belgrade today, adding that “a five-year contract with Ford Motor involves parts for their new 2.7 liter engine.”
Agena also makes engine parts for Navistar International Corp. (NAV:US), Camis Group, Caterpillar Inc., Fiat SpA (F) and JCB Inc., Grebovic said. The company’s business in Serbia, set up in 2006, had a turnover of 20 million euros in 2011 and net income of 1.8 million euros, which could double this year, he said. Agena will invest a total of 20 million euros in the Serbian operations over the next three years.
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