Brose has confirmed a new factory in Serbia, as previously reported by local media.
The factory will add 1,100 production, development and administration jobs but this comes as 2,000 go from Germany by 2022.
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Brose said the factory would ultimately cost EUR180m "in the coming years" while the new location north of Belgrade strengthens the competitiveness of the group.
Pancevo will make electric motors and drives as part of a first stage of expansion to be completed by 2021.
"We are systematically expanding our global development and production capacities with the new plant in Serbia," said Thomas Spangler, chief technology officer, at the signing ceremony.
Spangler emphasised good collaboration with government and authorities: "The support has been excellent thus far and marked by quick actions, constructive discussions and pragmatic solutions. I am convinced that this new location will offer good, long-term prospects for our family-owned company and our future employees here in Serbia."
Construction work on the 220,000 square metre site is already scheduled to begin this year.
The start of production of drives for cooling fan modules is set for summer 2021, followed by motors for steering systems and oil pumps.
