Germany's Vorwerk is to invest EUR43m in a Serbian factory.
Vorwerk Autotec will build the factory in the industrial zone of Preljina, near Cacak, in central Serbia.
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The company intends to open a total of 1,000 jobs over eight years and produce bushings and sealings for OEM customers including Audi, BMW, Mini, Volkswagen and Porsche.
Vorwerk Autotec plans to build a testing centre at the factory.
The project will be carried out by Vorwerk Autotec and its subsidiaries Vorwerk Drivetec and Eldisy, local report say.
Serbia is attracting parts investment as a relatively low-cost location close to central Europe. ZF is among a wave of suppliers who have recently chosen to invest in manufacturing facilities in Serbia.
ZF's E-Mobility division is expanding its production capacity for electromobility products by building a new facility in the Serbian city of Pancevo. The company is investing more than EUR100m (US$123.7m) in the project.
