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Outward direct investment - Cimos opens its 4th foundry in Bosnia and Herzegovina

Cimos, a fast-growing manufacturer from the Slovenian coastal town of Koper, specialises in four key areas: automotive industry, energy sector, farming mechanisation, and tool-making. As a tier-one supplier for the automotive industry, its investments in manufacturing facilities located beyond Slovenian borders give it a competitive edge over its rivals and create jobs for local communities. The latest addition to Cimos’ string of foundries in former Yugoslav republics is a casting facility in Zenica (Bosnia and Herzegovina). The first of the planned three casting lines was commissioned just over a year after Cimos closed the deal for the purchase of land. Once the investment starts running at full steam, the capacity of Cimos TMD Casting will be some 30,000 tonnes of castings for the automotive industry. The value of the complete investment project is around 32 million euros. »Today, the turnover of the Cimos plants operating in BiH amounts to 125 million euros. These are products for the automotive industry, which means that the parts we manufacture in BiH are installed in as many as 4.5 million of the best cars all over the world, « explained the director of TMD Gradačac, another Cimos subsidiary in Bosnia and Herzegovina.

A week later, on 7 March 2008, Cimos opened a new production line at its subsidiary TPS Labinprogres. A manufacturer of farming machinery located in Istria (Croatia) was a brownfield investment of Cimos made in 2001 and in a couple of years the company was in the market with a mid-range power, four-wheel drive agricultural tractor designed to meet the needs of an average farmer in the Adriatic region where farms rarely exceed three hectares.

In addition to the model Tuber 40 rolling off the new production line, TPS Labinprogres is expanding its product portfolio to professional and residential irrigation systems that offers a complete solution from a system design to installation and sells to clients in all countries of former Yugoslavia, France, Spain and other EU countries.

Cimos is vivid proof that in today's knowledge- and innovation-driven complex economy, companies that can combine business development expertise will also create synergies and design winning business models. Close collaboration with experts from the Ministry of the Economy, academic and professional circles from university professors to shop floor workers has facilitated its innovation management. On the other hand, the use of innovative ways has helped Cimos reduce material and production cost and win new customers. There is no doubt that government incentives to companies with sound investment projects work both ways: to attract foreign investors to Slovenia and to facilitate investments of Slovenian companies abroad.

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