The European Bank for Reconstruction and Development (EBRD) announced it is lending up to EUR 75 million to German automotive supplier Draexlmaier Group for investments in electric mobility and general capital expenditures in Romania, North Macedonia, and Moldova.

EBRD says that the tenor of the loan (undisclosed) is longer than what is readily available in the market from commercial lenders.

The Bank also says that its long-term relationship with Draexlmaier provides the latter with comfort to grow its investments and take on more risk in countries like Moldova or North Macedonia.

The project supports the expansion of production capacity in Romania for high-voltage harnesses and battery systems for electric vehicles and will broaden access to market-relevant skills by introducing new training programmes on emerging technical skills and new apprenticeship programmes in collaboration with local universities, the EBRD said in a project summary description on Wednesday.

In 2022, Draexlmaier started an investment of around EUR 200 million at its factory in Timisoara, western Romania, Profit.ro reported. Implemented in several stages, the project envisages the construction of production areas, warehouses, and office buildings.

Draexlmaier Timisoara will produce electronic and high-voltage components, including a battery assembly line for hybrid cars. Consequently, the number of employees will increase by over 1,000.

The German group entered Romania in 1993 and currently employs some 15,000 people (of the group’s 75,000) in manufacturing units in Brasov, Hunedoara, Pitesti, Satu Mare, and Timisoara.

iulian@romania-insider.com

(Photo source: Jerome Cid/Dreamstime.com)