Business News

TPV to get EUR 6.5m in state incentive for major investment

Novo Mesto, 20 December (STA) - TPV, a Slovenian automotive industry supplier, will receive EUR 6.5 million in state incentive for a EUR 49 million investment into production expansion after it reached two major deals with car makers Volvo Cars and BMW last year.

The group will expand its facilities in the town of Brežice, where it now employs 120 workers, with a new factory, which is expected to create around 50 jobs.

Announcing the state incentive, Economy Minister Zdravko Počivalšek said at Thursday's ceremony marking TPV's 30th anniversary 20 jobs will be in high-tech departments.

He also said his ministry had approved EUR 4.5 million in support of a development of light car components to a consortium working on "a factory of the future", part of which is also TPV.

Earlier this year, TPV said it planned investments of more than EUR 60 million due to the new deals over the next few years.

The group will supply BMW with car chassis and Volvo with components for electric vehicles. The two deals should create around 300 jobs.

Components for Volvo will start to be manufactured in the Brežice plant next year, while the new factory in Brežice is slated to launch full-scale production in 2021, CEO Marko Gorjup said at yesterday's event.

Gorjup said TPV was not worried about the cooling of the global automotive industry, saying it would adjust just as it had in the past.

He admitted orders had slightly decreased, but he believes they will rise again, stressing things should be looked at from a long-term perspective.

The group generated over EUR 150 million in revenue in 2018 and around EUR 3 million in net profit, with Gorjup expecting a similar result for 2019 and growth in 2020.

TPV's beginnings go back to 1954, but a milestones was 1992 when the company introduced the first industrial robot into production, and launched its own R&D in 1996.

The group has some 1,200 employees and several facilities around Slovenia and one in Serbia. It exports to 26 countries, with Mercedes, Daimler, Renault, Rolls Royce, Jaguar and Volkswagen among its clients.

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