Dräxlmaier could be the first German company to set up production in the newly recognised independent state of Kosovo.
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It signed an agreement with the Kosovo government on Wednesday to set up a pilot wiring harness project, with around 100 workers, in the capital Prstina. If the pilot is successful the company could create around 500 jobs in the country.
The former province of Serbia has record unemployment of up to 80%. As a result many young people are driven to crime. Because of the uncertain political climate, few western companies have invested in the country.
Last month Dräxlmaier set up a new production site in the north Serbian town. That will employ around 1,800 people manufacturing electronic parts for BMW cars. The operation was moved to Serbia because of “exploding” labour costs in Romania.
