The Government signed Wednesday an agreement with German company “Dräxlmaier” over state support in the amount of EUR 16 million for the construction of a new production line in the Kavadarci-based plant and the construction of a production facility in Kumanovo that is set to open 1,000 jobs.
“This agreement reaffirms the Government’s relationship with the companies operating the country and the favorable business environment that stimulates new investments and development of businesses,” Deputy PM for Economic Affairs Fatmir Bytyqi told today’s signing event.
Deputy PM Bytyqi said Dräxlmaier has been present in North Macedonia since 2012, currently employing about 5,500 workers in the Kavadarci plant.
“This investment plans an expansion of the production capacities and equipment for the Mercedes-Benz E-class project in the existing facility and the construction of a new facility in Kumanovo for their clients Mercedes-Benz and BMW,” said Bytyqi.
The state will support the investment through 10-year exemption from personal income tax charges for new employments, 10-year exemption from profit tax on new investments, cash grant in the amount of 10 percent of the amount of investment expenses but not exceeding EUR 1 million per year for a maximum of five years, cash grant in the amount of EUR 2,000 per employee for the purpose of creating new jobs and a monthly net wage that is at least 50 percent higher than the minimum net wage.
Since September 2020, the Government has signed 53 state support agreements, five of which with foreign companies investing in the country. The state support amounts to nearly EUR 96 million, resulting in over 2,000 new jobs.
Dräxlmaier manager Josef Kaufmann thanked the Government and the company’s new clients, saying they have been working intensively with 700 local enterprises.
Dräxlmaier director Lukas Muehringer added,“We are investing double-digit million amounts of euros in Kavadarci and Kumanovo plants and expect to open over 1,000 jobs. We are pleased by the fact that our projects open opportunities for the future”.
Dräxlmaier is a global automotive supplier founded in 1958. The family-owned company specializes in the production of electrical systems, electrical and electronic components, interiors as well as battery systems for premium vehicles.
