Companies
March 21, 2024
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Mahle Shifts Production from Slovenia to Bosnia

Mahle Electric Drives Slovenia, a major player in the tractor component industry, is shifting production to Bosnia and Herzegovina while reducing its Slovenian workforce.
Mahle Shifts Production from Slovenia to Bosnia
CC BY-SA 4.0

Mahle Electric Drives Slovenia, a subsidiary of the German automotive giant Mahle, is set to reduce its Slovenian workforce by 170 employees this year. This restructuring is due to the company's decision to optimise production by shifting its starter production program to its facility in Aleksandrovac, near Banja Luka, in Bosnia and Herzegovina.

Formerly known as Letrika, Mahle Electric Drives Slovenia became part of the Mahle group in 2014.  Recent years have seen the company make adjustments to its production capacity in Slovenia, including a previous workforce reduction in 2020. This trend of shifting less profitable operations to Bosnia and Herzegovina mirrors actions taken by other companies in the region.

Despite these changes, Mahle Electric Drives Slovenia is pivoting more strongly towards electromobility solutions, including the development of electric vehicle motors. The company anticipates increased growth in the electric vehicle sector but faces limitations in Slovenia regarding available resources and workforce.

"Our primary client base lies within the tractor industry, and we hold a leading position in industrial manufacturing. When purchasing a European or North American tractor today, there's an 85% chance two crucial components were made right here,"  Rutar added.

Mahle's significant investment in its new Aleksandrovac factory marks one of Bosnia and Herzegovina's largest automotive production plants. The 26,040 square meter facility boasts state-of-the-art manufacturing infrastructure.

Laktaši (Banja Luka) Mayor Miroslav Bojić noted that the €20 million investment by Mahle has been ongoing for several years. The factory is expected to employ over 700 workers and provide enhanced working conditions.

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