Hot topics

Slovenia Business Week no. 16/2005: Unior and DaimlerChrysler Start Business Partnership

The new company will be based in Slovenia and is expected to launch production in the summer

Unior, the tooling company from Zrece, and automotive giant DaimlerChrysler have set up a joint venture. The new company will be based in Slovenia and is expected to launch production in the summer, Unior manager Gorazd Korosec told a press conference on Friday, 15 April.

The new company, which will be based on the premises of the defunct automotive company TAM in the city of Maribor, will manufacture steering mechanisms and spare parts for class S and E cars.

According to the Union-DaimlerChrysler contract, which was signed on Wednesday, DaimlerChrysler holds a 51% stake and Unior the remaining 49% in the new company.

The start-up capital is estimated at EUR 4.5m, with a share each partner invests depending on their stake in the company. The joint venture's annual revenues are estimated at around EUR 10m, Korosec said.

Unior employs 2,563, and an additional 80 workers are to be employed at the new venture. The number of employees will increase according to the company's needs and production requirements, Korosec added. The company is open to other investors with the purpose of expanding its production.

Unior has been an important strategic supplier to the automotive industry for several decades, and has been in business with DaimlerChrysler for many years. DaimlerChrysler decided to move part of its production to other locations three years ago, and chose Unior after several months of negotiations.

Source: Slovene Press Agency STA

Author: STA