Croatian experts to produce Aluminium components for BMW; 600 million kuna investments wide open new opportunities

During the end of 2019, a large production investment of about 600 million kuna has been nominated for the status of a strategic investment project, the door now is wide open for it and the included Croatian experts through its recent inclusion on that very list.

Subsequently, in Croatia, among other things, comparatively prompt kick-off of serial production of the first aluminium components for the German BMW is expected. It’s time for Croatian experts on hand to once again show the level of skill that this small country continually produces across all fields.

The BMW aluminium components that would be produced in Croatia will majorly function to protect the brakes of the cars. However, at the same time preparations for the new production programme of the Sibenik-based company Impol - TLM, which is based on a project which envisages investments in increasing production capacity and building a new foundry with a total capacity of 200,000 tonnes.

According to Tomaz Smolar, Director, Sibenik based Impol-TLM: “This is a significant move that will provide a link between the historic Dalmatian city of Sibenik and modern products of the new automotive industry.”

Zeljko Buric, Mayor of Sibenik stated: “Preparations for this investment in which Croatian experts will play the main role have been going on for some time now, but this newly acquired strategic status brings with it a significant impetus due to the expected benefit of speeding up the procedures for obtaining all of the necessary permits.”

"The only safety valve for the economy is an investment in industry, and Sibenik's local economy is functioning in this ongoing coronavirus-dominated crisis quite well, filling the city budget with a share of 30%, while tourism is bringing 17%," added the Mayor.

The investment will amount to about €25 million, and a new foundry will be built on the company's land, on the site of the former electrolysis and in the extension of the existing foundry.

The result of the investment would meet all of the highest environmental standards following the EU directive, which requires the use of state-of-the-art production equipment to minimise the impact on the environment.

Smolar also said: "If all of the permits are issued in the expected time, we can expect the completion of the first phase of the investment and the start of production at the end of next year. We're in an advanced process of preparation and we're behind the decisions regarding the selection of technology and the order of production equipment, the production of which is also in progress. In that sense, we're talking about an investment that has started, although we have been waiting for a long time for an environmental and construction permit.”

Impol-TLM Director is hopeful that the inclusion of their project on the list of strategic investments will be very helpful.

To increase the production capacity of aluminium products, as well as to start the operation of the new foundry, four phases are planned to achieve the stated capacities of aluminium blocks. They'll build them for their own needs because Impol-TLM will use them.

Namely, after the closure of Mostar's Aluminij, the purchase of such blocks is carried out on foreign markets, so it would cease to be a net importer, while it would gain advantages in terms of flexibility and quality of the products themselves. The concept is designed so that investments in the first two foundry lines with a capacity of 50,000 tonnes each. The value of the investment in the first line is €25 million, and €20 million is the price tag attached to the second.

Smolar noted: ''The second phase is planned for the end of 2022, and further dynamics are included in Impol's strategic plans until 2030. The third and fourth phases of our strategy envisage investment not only in casting but also in aluminium rolling, which means that investment in rolling capacity amounts to additional €100 million.”

“The first line on which production will start at the end of 2021 will be intended for blocks for the pharmaceutical and food industry here in Croatia. The second line is for the automotive industry for which aluminium alloys will be made, also for the transport industry. We've already signed a contract and received a nomination for the production of brake protection products for BMW, the delivery of which will start in 2022.”

 

source https://www.alcircle.com/news/croatian-experts-to-produce-aluminium-components-for-bmw-600-million-kuna-investments-wide-open-new-opportunities-57937