THE INDUSTRIAL PRODUCTS & SERVICES MAGAZINE FOR THE SOUTH-EAST EUROPEAN COUNTRIES www.tllmedia.bg MARCH ISSN 1312-0670 Visit the SEEIM web site: www.SEE-industry.com issue1/2025 The e-mobility market in SEE
south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries Bulgaria, Croatia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkiye, Albania. It is distributed free of charge among the working specialists in the industrial sectors in the region, and the engineering, manufacturing and trade companies in South-Eastern Europe. Editorial Department Dilyana Yordanova - Lead Editor [email protected] % (+359 2) 818 3823 Lyuben Georgiev [email protected] % (+359 2) 818 3808 Pepa Petrunova [email protected] % (+359 2) 818 3822 Advertising & Communications Petya Naydenova % (+359 2) 818 3810 Gergana Nikolova % (+359) 888 595 928 Elena Dimitrova % (+359 2) 818 3815 Mariya Koyadzhikova % (+359) 889 256 232 [email protected] Secretary Zariana Markova [email protected] % (+359 2) 818 3811 ISSN 1312-0670 TLL Media Ltd. © All rights reserved.The artwork, layout design, the articles and all the graphical and text materials used - images, photos, texts, etc., are copyrighted and protected by the law. Unauthorized and unpermitted use is illegal and a copyright infringement. The Publisher shall not be held liable for the contents of the advertisements, advertising layouts and banners, video advertising publications, advertorials and company articles. Copyrights of all mentioned trademarks, registrated trademarkes, etc. belong to their owners. IN THIS ISSUE: www.tllmedia.bg Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838 e-mail: [email protected] ® 4 Semiconductor industry in Slovenia 6 Slovenia’s Novartis opens new EUR 40 million facility 6 EBRD supports Montenegro’s energy sector with EUR 35 million loan 8 The e-mobility market in SEE 10Chinese Fine Stamping invests in motor cores plant in Serbia 10OMV Petrom starts construction of sustainable fuels unit 12Aluminium manufacturing in Turkiye 14Food processing in Serbia and Montenegro
south-east european INDUSTRIAL MARKET 3 PAID ARTICLE Why Utility Companies Need Emergency Restoration Systems (ERS)? www.power-line.bg In extreme weather conditions during hurricanes or snowstorms accompanied by heavy snowfall and temperatures around zero, ideal conditions for icing of wires and poles are observed. This dangerous phenomenon is the reason for the rupture of a wire by the weight of the accumulated ice following the destruction of the pillar structure. The challenges of replacing concrete/steel lattice poles in severe conditions Replacing concrete/steel lattice poles 24 kV in such harsh conditions is a very difficult and laborious process, due to their length (13 m) and weight (1500 kg). A special means of transport is required, which is difficult to get on the site in wet conditions and impossible during the winter time. In severe winter conditions dozens of concrete and steel lattice poles fell due to icing on the facilities causing blackouts to a lot of customers in mountainous areas. Installing long and heavy poles with the need of a concrete foundation is a great challenge for the linemen of the Utility companies. Under such severe conditions, sub-zero temperatures, wind and blizzard, it takes a week just to restore the foundations, and only one concrete/lattice pole a day after that for flat terrains only. In difficult-to-reach mountainous areas, restoration activities can take even longer. The Solution: An Emergency Restoration System Using Composite Poles Imagine an emergency team that can quickly restore a damaged pole in 2-3 hours without a crane, even in a strong blizzard and sub-zero temperatures! This is not science fiction, as it may sound. The Emergency Restoratioin System represents a modular composite pole made of fiber-reinforced polymers FRP, with a guaranteed lateral top structural force of 10 kN (1019 kg) for the intermediate pole and 15 kN (1529 kg) for the anchor one. It consists of three modules, each up to 5 m long and weighing up to 50 kg. The small size and light weight allow the modules for two composite poles to be transported by Dacia Duster/ Ford Ranger, an off-road vehicles near the damage site and carried by hand to the installation place. No crane or concrete foundation is required. All that is needed is a pre-dug trench and backfill for the intermediate column and an existing concrete foundation of a damaged lattice steel tower for the anchor one. The recovery will take only a few hours, not a week! This will give utilities the advantage of being able to restore 3-4 collapsed poles within one working day in severe weather conditions, in hard-to-reach areas without roads, minimizing the duration of blackouts to consumers. Bibliography 1. Impact & Mitigation of Icing on Power Network Equipment, INMR, Utility Practice & Experience, November 8, 2024. https://www.inmr.com/impact-mitigation-icing-power-networkequipment/
south-east european INDUSTRIAL MARKET 4 Semiconductor industry in Slovenia Slovenia, a relatively small but highly innovative country in Central Europe, is gradually making its way in the global semiconductor industry. Despite its size, Slovenia boasts a strong manufacturing tradition, highly skilled workforce, and an impressive focus on research and development activities. The Slovenian semiconductor sector has been steadily evolving, positioning itself as a key player in niche markets and specialized applications. In November 2024 the European Commission chose Slovenia as one of 24 member states to develop chip competence centers. For SMEs and startups in particular, the centers will offer vital resources for the development of semiconductor and chip solutions. Strong electronics and electrical sector Slovenia's electronics industry, along with the electrical sector, is the fastest-growing manufacturing branch in the country, with exports increasing by over 43% between 2015 and 2019. The sector is driving a greener and digital future, providing essential components for e-mobility, smart grids, smart homes, and cities. With nearly EUR 5 billion of annual turnover and around 30 000 employees, the electrical and electronics branch is among the strongest in Slovenian manufacturing, with a value-added of approximately 44% of total sales. Slovenia's electronics and electrical industry, consisting of 933 companies, generated revenues of EUR 7,6 billion in 2023. These companies are mainly specialized SMEs, producing circuit boards, electronic components, optronic devices, telecommunication systems, and measurement equipment. Despite generating less than EUR 850 million annually, they create over EUR 300 million of added value. The country's educated workforce, investment in research and development activities, and expertise in design, development, and engineering of cutting-edge products contribute to its success. Slovenia's export markets are led by Germany, Italy, Croatia, France, and Austria. Slovenia's small electronics industry is crucial in specialized areas like optotronics, laser technology, medical instruments, and measurement devices. Slovenian-designed printed circuits are used in CERN's Large Hadron Collider and major particle accelerators worldwide. Slovenia's innovative products include medical laser systems, industrial sensors, LED optotronic devices, and laboratory equipment. The industry receives strong support from local research and academic institutions, with over 5% of revenue reinvested in research and development.
south-east european INDUSTRIAL MARKET 5 The microchip sector is thriving Integrated circuits (ICs) have a long history in Slovenia, dating back to 1969 when the first transistor-based ICs were made. A Laboratory of Microelectronics was established at the Faculty of Electrical Engineering in Ljubljana, where various ICs were developed for Slovenian industry needs. Today, Slovenian solutions are found in consumer products such as RFID badges, contactless transactions in NFC smartphones, and electronic semiconductor components. The design and manufacture of microchips require indepth knowledge of electrical engineering, electronics, microelectronic technologies, statistics, physics, computer science, signal processing, materials engineering, and microwaves. New developments in design methods, technologies, materials, and customer requirements continue to shape the industry. The establishment of competence centers for advanced semiconductor technologies in Slovenia was announced in 2024. The primary goals of these centers will be research, development, and prototype and pilot manufacturing. In order to help stakeholders create cutting-edge niche technologies and products, the competence centers will serve as one-stop shops for knowledge, integration, and support pertaining to crisps and semiconductor technologies. They will also offer an experimental and pilot environment, best practices, and other activities. Slovenian microchips locally created and manufactured, are in use worldwide. They are proof of the high degree of knowledge possessed by the Slovenian workforce in the field of microchips and semiconductors in general. The design, production, and testing of terahertz sensor systems are the main areas of research. These systems will be used in security devices to detect dangerous objects, identify potentially harmful or dangerous molecules in the air or detect explosives and drugs, detect and diagnose cancer in medicine, and develop integrated circuits for use in positron emission tomography, biometric applications, and space, where radiation protection is especially important. Integrated photonic circuits, which are becoming an essential part of data centers (integrated transmitters) and whose applications are growing to include biomedicine, LIDAR, artificial intelligence, and quantum technologies, are being researched in addition to integrated electronic circuits. In the R&D departments of the multinational companies STMicroelectronics (smart cards, contactless payments, RFID badges and readers), Renishaw, and Aviat Networks, as well as the Slovenian companies RLS Merilna tehnika (ICs for magnetic displacement and rotation
south-east european INDUSTRIAL MARKET 6 SEE NEWS Slovenia’s Novartis opens new EUR 40 million facility Novartis in Slovenia officially opened its new viral vector production facility (VIFA One) in Menges. The opening event was attended by the Minister of Higher Education, Science, and Innovation of the Republic of Slovenia, Igor Papic, PhD, as the keynote speaker. With this EUR 40 million investment, Novartis significantly expands its research and production capabilities in the biopharmaceutical sector and strengthens Slovenia's key role within one of the world's leading pharmaceutical companies. The specialized VIFA One facility will support the production of viral vectors for breakthrough cell and gene therapies for the treatment of certain autoimmune and genetic diseases and cancers. The fully automated production environment will ensure precision and efficiency at all stages of the production process under one roof, using advanced robotics. EBRD supports Montenegro’s energy sector with EUR 35 million loan The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 35 million to Crnogorski Elektrodistributivni Sistem (CEDIS) to support the development of Montenegro’s energy sector. This will be used to finance the implementation of a new supervisory control and data acquisition (SCADA) system and an advanced distribution management system (ADMS), as well as the procurement of new smart meters. The project is also aiming to benefit from a grant under the European Union’s Western Balkans Investment Framework. CEDIS owns and operates power distribution networks of up to 35 kV in Montenegro and is fully owned by Elektroprivreda Crne Gore. This project will, among other benefits, reduce technical losses by 10%, reduce grid outages to approximately one-sixth of the current level, allow new renewable energy sources to be integrated into the grid and enhance cyber security. Photo: Novartis measurements), Skylabs (ICs for space applications), Beyond Semiconductor, Optomotive, and others, Slovenian engineers and master's and doctoral students from technical faculties also design integrated circuits. Integrated circuits are being developed to the point where they can be produced by businesses that specialize in chip manufacturing. At German-owned Diotec in Trbovlje, diodes and rectifier bridges are produced as part of the extensive industrial manufacturing of semiconductor circuits. Semiconductor competency centers As previously mentioned, Slovenia is one of the 27 semiconductor competence centers chosen by the European Commission. Assistance, training, and access to significant infrastructure resources, including design platforms and pilot lines, will be provided by semiconductor competency centers. After the Ministry of Digital Transformation assisted the Slovenian consortium in successfully submitting an application to the European call for proposals, it was selected to carry out the activities. The consortium's main Slovenian partner is the Faculty of Electrical Engineering at the University of Ljubljana. The consortium also includes the Jozef Stefan Institute, the University of Nova Gorica, the Faculty of Computer and Information Science at the University of Ljubljana, the Centre of Excellence in Nanosciences and Nanotechnology Nanocenter Ljubljana, and the Faculty of Electrical Engineering and Computer Science at the University of Maribor. Each center will capitalize on national and regional advantages while concentrating on specific vital technology areas. This strategic focus ensures sustained investment in local expertise and a relentless drive for innovation and growth. By integrating into a European network, the competence centers will promote the semiconductor industry and address the particular needs of regional ecosystems. Projects, breakthroughs and startups Slovenia is expected to significantly participate in EU-wide collaboration to develop advanced technology infrastructure through multicountry projects on cloud, semiconductors, blockchain, and quantum communication. Slovenia's government's official website lists major projects in semiconductors and microchips, including the "Microelectronics-2" initiative. Starting in 2023 and ended in December 2024, the initiative strengthens EU Member States' capacity to build and enhance EU autonomy and resilience in semiconductor value chains. Slovenia plans to participate in this initiative as part of the national Recovery and Resilience Plan Digital Transformation of the Economy. Slovenia's semiconductor sector heavily relies on microelectronics. It is crucial for national security within the EU in addition to making a sig-
south-east european INDUSTRIAL MARKET 7 nificant contribution to the competitiveness of European business. The Internet of Things (IoT), artificial intelligence (AI), communications (5G and future 6G networks), autonomous driving, new mobility, medical technology, and security/ defense technologies are all built on top of it. Recent ground-breaking developments from two Slovenian businesses, Beyond Semiconductor and Elaphe, demonstrate the revolutionary potential of European cooperation in microelectronics and sustainable mobility. The goal of this project is to develop motor control systems for electric vehicles by utilizing gallium nitride (GaN) and silicon carbide (SiC) technology. These materials are renowned for their exceptional durability and efficiency, providing a number of benefits above conventional silicon-based alternatives. This invention improves driving range and battery longevity by lowering energy loss during vehicle operation, two important aspects of the broad adoption of electric vehicles. Gallium arsenide (GaAs) energy converter development is the subject of another creative project by Elaphe. The purpose of these converters is to convert surplus heatwhich is frequently squandered in automotive and industrial systems into useful energy. In addition to helping achieve more general energy efficiency objectives, this technology has the potential to drastically cut energy waste across industries. Through its CONPARF project, Beyond Semiconductor is simultaneously making major advancements in radio frequency (RF) signal processing. The goal of this project is to create a novel method that has the potential to reshape the industry standard by integrating RF filters and digital logic onto a single semiconductor chip. There are 68 initiatives in the wider IPCEI ME/ CT network, which spans 14 EU member states. Collaboration between businesses, academic institutions, and governments is encouraged by this ecosystem, which propels innovation in important fields including sustainable mobility, communication technology, and microelectronics. Co-funding of the IPCEI ME/CT framework by the European Union and its member states highlights the common commitment to bolstering Europe's technological sovereignty and tackling global issues such as digital transformation and climate change. Semiconductors startups in Slovenia include more than 30 companies, among which a couple of Series A+ funded businesses, that manufacture or develop their own semiconductor ICs, electronic components and software for designing them, including digital, analog, MEMs, sensors, photonics, embedded hardware and software, display devices, EDA tools, etc. Events Slovenian exhibitors have long participated in Munich's biannual trade show electronica. Examples include producers of specialized printed circuit boards, such as Elgoline or Intectiv, as well as some of the rapidly expanding technology firms, such as Elaphe and Instrumentation Technologies. However, among Slovenian participants in the most recent editions of electronica are some less familiar companies, such as Eltas a producer of keyboards with membranes, LTek specialized in smart emergency medical services (EMS), and Red Pitaya a developer of cutting-edge, electronically reconfigurable lab equipment for use in a variety of sectors and research. A major local event dedicated to advances in semiconductor technologies and chip manufacturing, and latest trends in micro-, nano- and quantum electronics and learning about recent achievements in the field of research and development of chips and semiconductors, is the Slovenian conference on chips and semiconductors "SLO-chip". Its third edition took place in January 2025, at the Faculty of Electrical Engineering of the University of Ljubljana. The conference provided insights into research and achievements in chips and semiconductors, focusing on current challenges and exchanging new experiences. Participants included researchers, engineers, scientists, and industrial experts from Slovenia and abroad. The conference highlighted hotspots and frontiers of industry development, such as chips, sensors, and photonic integrated circuits. The conference also featured international experts from Austria, France, Croatia, the Netherlands, Taiwan, and the USA. New competence centers for chips and semiconductor technologies were also presented.
south-east european INDUSTRIAL MARKET 8 The e-mobility market in SEE As Europe looks to become carbon neutral by 2050 and the European Green Deal becomes a key part of the continents economic policies, interest in making the automotive industry cleaner, and boosting the uptake of electric vehicles, is now high on the agenda of manufacturers, investors, and consumers alike. Southeast Europe is no exception, with several countries in the region updating their public transport fleets with electric vehicles (EVs), offering subsidies for electric car purchases, and even producing electric cars of their own. New EV projects in Turkiye The country has turned into attractive ground for the production of electric vehicles due to several interrelated factors. Firstly, Turkiyes strategic geographical location makes it a gateway to the European market, which is one of the largest consumers of zero emission cars. This geographical position also allows it to profit on its proximity to developing markets, which could lead to an increase in domestic sales. In addition, Turkiyes government has put in place a number of initiatives aimed at drawing in automakers. The country has implemented business-friendly policies and incentives, including tax breaks, grants for research and development, and subsidies, to promote investment in the EV industry. The government has set ambitious goals for increasing the number of EVs on the road and building the necessary charging infrastructure, which contributes significantly to improve the business environment, making it more favourable for foreign investment. Additionally, Turkiye boasts a highly qualified labor force, including numerous engineers and technicians with the necessary skills to support the manufacturing of electric vehicles and associated technology. This workforce, combined with relatively low labour costs in comparison with other European countries, makes the country a profitable location for electric vehicle manufacturing. Lastly, Turkiye has access to critical minerals and materials required for the manufacturing of batteries, a crucial part of electric vehicles. This allows producers to limit supply chain risks and expenses. The local brand Turkiyes Automobile Initiative Group (TOGG) has managed to position itself as a symbol of Turkish innovation in the automotive industry. Its plant in Gemlik, in the Bursa province, began production in 2022, launching a C-segment SUV under the Togg brand. This brand, representing the countrys first comprehensive effort to develop and manufacture a high-quality electric car, aims not only to meet domestic demand but also to compete in international markets. TOGG was established in 2018 under the leadership of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) by companies of Anadolu Group, BMC, Root Group, Turkcell and the Zorlu Group via a collaboration. By 2030, TOGG will produce and own the intellectual and industrial property rights of five different electric vehicle models in Turkey: SUV, b-SUV, sedan, c-hatchback, and b-MPV. In 2024 the Turkish Ministry of Industry and Technology signed a USD 1 billion landmark investment agreement with China's BYD, the world's largest EV manufacturer, at an official ceremony held in the Presidential Working Office in Istanbul. As per the agreement, the Chinese carmaker will build an electric and plug-in hybrid car production facility with the capacity to manufacture 150 000 units annually, alongside a sustainable mobility and R&D center. The facility aims to create up to 5000 direct jobs and is scheduled to commence production by the end of 2026. According to experts in the field this strategic investment underscores Turkiye's burgeoning significance in the global automotive industry and its potential as a key hub for advanced technological production. The new factory is expected to enhance Turkiye's manufacturing industry by incorporating cuttingedge technologies, fostering innovation, facilitating know-how transfer, boosting local production capabilities, and creating a significant regional supply chain. Ford Otosans factories in Kocaeli extend over almost 1,7 million square metres, including the Yenikoy and Golcuk plants and a parking area and shipping port for finished vehicles. The company plans to reach capacity of more than 900 000 vehicles at its four plants (three in Turkiye and one in Romania). Ford Otosan has increased capacity at Kocaeli and installed a
south-east european INDUSTRIAL MARKET 9 battery assembly line with a production capacity of 130 000 units, in line with its goal of becoming Turkiye's first integrated electric vehicle production plant. Ford Otosans Kocaeli plants won the World Economic Forum's (WEF) Global Lighthouse Network award among all Ford plants worldwide and is the second vehicle plant to do so. Furthermore, Renault Group, in collaboration with the Turkish conglomerate Oyak, has reinforced its commitment to Turkiye with a USD 431 million investment that will extend until 2027. This investment is aimed at the production of four new electric models in the Bursa province, consolidating Turkiyes position as a key manufacturing hub for the brand, a move that highlights the countrys strategic importance for Renault, which seeks to capitalise on the growing demand for electric cars both locally and in the neighbouring markets. The first autonomous EV production facility in Croatia Construction of the first autonomous vehicle production facility in Croatia has recently made good progress on a 28 500-square-meter site within VGP Park Zagreb, in Lucko. This project
south-east european INDUSTRIAL MARKET 10 SEE NEWS OMV Petrom starts construction of sustainable fuels unit OMV Petrom announced the start of construction for a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit at the Petrobrazi refinery. This new facility will position OMV Petrom as the first major producer of sustainable fuels in the Southeast Europe, with an annual capacity of 250 000 tons. The new unit will enable OMV Petrom to integrate the production of SAF and HVO with the existing infrastructure for fuel production, storage, and distribution, thus meeting the region's sustainable mobility needs. The project entails a total investment of EUR 750 million, of which EUR 560 million are allocated for the construction of the SAF/HVO unit, and EUR 190 million for two green hydrogen production facilities. The flexibility of the new facility allows for the adjustment of the type of raw materials used (used oil, animal fats) and the mix of finished products (SAF and HVO, as well as bio-naphtha and bio-LPG). Chinese Fine Stamping invests in motor cores plant in Serbia Chinese motor lamination core manufacturer Fine Stamping plans to invest EUR 50 million by 2028 in building and equipping a factory in the Serbian city of Apatin in the northern Vojvodina province, the provincial government informed. Construction of the plant, which will produce motor cores for electric cars, is expected to be completed in July, while production should begin in September. In the first phase, the factory will employ 150 people. "Serbia is becoming a centre for the production of electric motors and electric vehicles, which not only improves the domestic industry but also positions our country as an important player in the global market", said Maja Gojkovic, president of Vojvodina's government. Photo: Autonomous Province of Vojvodina Photo: OMV Petrom is a collaboration between Verne, a Croatian company developing an innovative ecosystem for urban autonomous mobility, and VGP, a panEuropean provider of high-quality logistics and semi-industrial real estate. At the new 10-hectare business park in Lucko, the works are progressing on a facility for the large-scale production of autonomous electric vehicles. "The construction of the Verne large-scale production factory is a strategically important step for our company and a significant contribution to the development of a future-oriented automotive industry in Croatia. This is the first factory of its kind in the region, positioning Croatia as a key player in the modern automotive industry. Verne vehicles for all markets will be produced in Croatia and exported globally. We are pleased to collaborate with VGP, an industry leader whose in-house technical expertise ensures the successful implementation of this complex project, from development to property management. Its important to mention that the construction of the Verne factory, its maintenance costs, along with additional resources Verne will invest in equipment are entirely funded through private investments and are not connected to EU funding", said Marko Pejkovic, CEO and Cofounder of Verne. The start of construction at VGP Park Zagreb marks VGPs first investment in Croatia. The production facility for autonomous electric vehicles will be built according to Vernes requirements and specifications, while the factory building will be owned by VGP. The factory will be on a longterm lease, which is a standard business arrangement for industrial facilities. The production facility, that aims to obtain the BREEAM Excellent certification and comply with EU Taxonomy, will be equipped with state-of-art technology for manufacturing, assembly and testing of Verne autonomous vehicles. The realisation of this project will bring numerous benefits to Croatia and represents a significant step forward in the development of digital and green production technologies. Upon completion, the factory is expected to create up to 400 job positions. The end of construction works is planned for the end of 2025, while the factory will start operating in 2026, according to the project timeline. Initially, Verne will produce several hundred vehicles. The production volume will increase over time, following the development and scaling up of the project. EV charging solutions development in Bulgaria AMPECO is a software company that offers a white-label and hardware-agnostic EV charging management platform bundled with white-label EV driver apps. The company delivers a globally recognized product and high-quality services to companies who need to manage their EV charg-
south-east european INDUSTRIAL MARKET 11 ing infrastructure, processes, and efficient energy usage. AMPECO's cloud-based platform addresses specific EV charging challenges, especially in energy management. The company's API seamlessly integrates with smart meters, building management systems, and renewable energy sources to maximize efficiency. It uses dynamic load management to support priority charging and demand-response events and efficiently distribute the available power to avoid costly grid upgrades. In November 2024 AMPECO announced that the company had raised USD 26 million in Series B funding, led by Revaia, with continued support from its existing investors Cavalry Ventures, BMW i Ventures, and LAUNCHub Ventures. This milestone brought AMPECOs total funding to USD 42 million since the companys founding in 2019, marking a significant step in its journey to enable and accelerate the global transition to electric mobility. The Series B funding will fuel AMPECOs growth plans while accelerating product enhancements and expanding into key markets like Western Europe, the Nordics, the UK, North America, and Southeast Asia. To support this, the company aims to double its team size over the next two years. Gemamex Motion Co. is another Bulgarian company in the field of e-mobility, manufacturing powerful charging stations for electric buses with ultra-capacitors. The companys production range is focused on developing fast charging stations with a power of up to 450 kW (single module) for an alternating supply voltage of 3 x 400 VAC and a power of 250 kW (single module) for a constant supply voltage of 660 VDC. The single modules can be connected in parallel, which doubles the above capacities to 900 kW or 500 kW respectively. Fast charge technology is applied, where according to the energy capacity of the ultra-capacitor, about 5 8 kWh of energy can be charged in one minute. The charging is performed through charging pillars, and it is possible to work with both a two-pole and a four-pole pantograph. These charging stations can also be upgraded for DC charging of buses, trucks and electric cars with standard batteries via a cable with CCS2 interface. Gemamex Motion Co. also offers software for monitoring the charging processes with options for energy management of the bus auto park. Recent developments in Slovenia and Romania In July 2024 Slovenias government signed a Memorandum of Understanding (MoU) with Renault for the development and production of Twingo E-Tech electric cars in Novo mesto. The MoU set out possible government support for the development and production of the new electric city car at the Revoz plant. After more than 50 years of Renault car production in Novo mesto, including electric cars, the plant will benefit from extensive investment in new production processes. Following discussions with the investor, the Slovenian Government decided to support the investment, thereby ensuring the future of the Revoz plant in Novo mesto. This move will secure not only Slovenia's future as a car manufacturer but also its transition into an electric vehicle manufacturer. The future electric Twingo E-Tech model is Renault's response to Europe's need for affordable electric city cars, aiming to make electromobility accessible to all. This new project will accelerate digitalisation and decarbonisation efforts, provide additional training and retraining for employees, create new jobs, and strengthen Revoz's cooperation with Slovenian development institutes and innovation clusters. At the end of October 2024 Ford Otosan inaugurated a new battery production line at its factory in Craiova, Romania. The new assembly line will support the future production of electric vehicles at the plant. Last year Ford Otosan Craiova started the production of electric versions of Ford Transit Courier, Ford Tourneo Courier, as well as Puma Gen-E models, as part of the EUR 490 million investment, announced in 2022, when Ford Otosan took over the Craiova plant.
south-east european INDUSTRIAL MARKET 12 Aluminium is a cornerstone of modern industry, integral to sectors ranging from automotive manufacturing to construction and aerospace. Its lightweight yet durable nature makes it indispensable in producing vehicles, aircraft, packaging, and infrastructure. The European Union (EU), with its robust industrial base, relies heavily on a consistent and reliable supply of aluminium to maintain its manufacturing prowess and economic stability. In this intricate supply chain, Turkiye has emerged as a pivotal player, serving as both a significant importer and exporter within the aluminium industry. According to a market analysis by Technavio the Turkish aluminium manufacturing market size is forecast to increase by USD 2,81 billion at a CAGR of 6,78% Overview Over the past decade, Turkiyes aluminium industry has experienced substantial growth, evolving into a critical component of the nations industrial sector. In 2023, Turkiyes aluminium exports reached approximately USD 5,3 billion, marking a significant increase from previous years. This upward trajectory underscores the countrys expanding influence in the global aluminium market. The industrys growth is not only evident in export figures but also in domestic production and consumption patterns. In 2023, Turkiye produced approximately 1,92 million tons of aluminium products, reflecting the materials importance in various domestic industries. The construction sector, for instance, utilizes aluminium extensively in building facades, window frames, and structural components due to its strength and corrosion resistance. The automotive industry also relies on aluminium for manufacturing lightweight vehicles that meet stringent fuel efficiency and emission standards. Additionally, the packaging industry benefits from aluminiums properties, using it in applications ranging from beverage cans to foil packaging. This diverse applicaAluminium manufacturing in Turkiye tion base has fueled the industrys expansion and solidified its role in Turkiyes economic development. Production capacity Despite its impressive production figures, Turkiye remains heavily reliant on imported raw materials to meet its aluminium production needs. In the first half of 2024, Turkiye imported approximately 984 000 tons of aluminium, with primary aluminium accounting for 71% of this volume. This reliance on imports exposes the Turkish aluminium industry to global market fluctuations, including price volatility and supply chain disruptions. For instance, geopolitical tensions or trade policy changes in supplier countries can directly impact the availability and cost of aluminium in Turkiye. To mitigate these risks, there is a pressing need for Turkiye to invest in domestic production capabilities and explore alternative sources of raw materials. Enhancing domestic recycling efforts could also play a crucial role in reducing import dependency and promoting sustainability within the industry. Trade relations with the EU The trade relationship between Turkiye and the European Union in the aluminium sector is both robust and multifaceted. In 2022, the EU imported aluminium worth approximately USD 4,05 billion from Turkiye, underscoring Turkiyes role as a key supplier to European markets. Conversely, the EU exported aluminium valued at around USD 990,36 million to Turkiye in the same year, indicating a trade surplus in favor of Turkiye within this sector. This dynamic reflects the complementary nature of the two economies, with Turkiye supplying semi-finished and finished aluminium products to meet the EUs industrial demands, while importing certain specialized aluminium products and raw materials from EU member states. The EU Turkiye Customs Union, established in 1995, has facilitated this bilateral trade by eliminating tariffs on industrial goods and aligning Turkiyes trade policies with those of the EU. This arrangement has enabled Turkish aluminium producers to access European markets
south-east european INDUSTRIAL MARKET 13 more easily, fostering closer economic integration and cooperation between the two parties. Challenges and opportunities Despite its growth and increasing integration into the European market, Turkiyes aluminium industry faces several challenges that could impede its future development. One of the primary challenges is the heavy reliance on imported primary aluminium, which exposes the industry to global market fluctuations and potential supply chain disruptions. For instance, geopolitical tensions, trade disputes, or economic sanctions involving key supplier countries could lead to sudden shortages or price spikes, adversely affecting Turkish manufacturers. Additionally, the industry faces challenges related to energy consumption and environmental sustainability. The Turkish aluminium sector requires significant technological transformation to align with national and international environmental goals. Strengthening efforts in energy efficiency and transitioning to decarbonization are of utmost importance for the sector. Advancing production technologies, improving process efficiency, adopting emission-reducing techniques, and enhancing access to finance will move the industry forward. These efforts will ensure the sector not only meets stringent environmental standards but also improves its competitive position in the global markets. To enhance its competitive edge in the global market and ensure sustainable growth, Turkiyes aluminium sector must develop innovative solutions and strategic collaborations. This transformation is a critical step towards achieving decarbonization and emission reduction targets. However, this process necessitates substantial investment. To successfully implement technological transformation, the aluminium sector needs to modernize its existing infrastructure and invest in innovative technologies. The cost of this technological transformation is considerable, and appropriate financing mechanisms need to be developed to cover these costs. At this point, it is crucial for policymakers to collaborate with industry stakeholders and provide new financial resources.Additionally, prompt and effective actions must be taken to implement large-scale investment plans. Incentive measures that provide public subsidies, facilitating renewable energy investments, and mobilizing private capital will support the adoption and dissemination of low-emission technologies. This collaborative approach will help ensure the successful technological transformation of Turkiye's aluminium industry, aligning it with global environmental standards and enhancing its competitive edge in the market. By focusing on these areas, the Turkish aluminium industry can continue to grow sustainably while contributing to global environmental goals. Despite the challenges, Turkiyes aluminium industry is poised for significant growth and collaboration opportunities, particularly in the context of its relationship with the European Union (EU). The EU Turkiye Customs Union, established in 1995, has been instrumental in facilitating trade between the two parties. In 2023, bilateral trade reached a record high of nearly EUR 206 billion, with Turkiye becoming the EUs 5th largest trade partner, accounting for 4,1% of the EUs total trade in goods. While the EU remains a significant partner, exploring new markets can mitigate risks associated with over-reliance on a single region. Regions such as Asia and Africa present emerging opportunities for aluminium exports. Investing in R&D can lead to the development of high-value aluminium products, such as specialized alloys for aerospace or automotive applications, thereby increasing export value. Turkiyes aluminium industry holds a pivotal position in the EUs supply chain, contributing significantly to various sectors, including automotive, construction, and packaging. While challenges such as import dependency and environmental concerns persist, the industrys growth trajectory remains positive. By leveraging opportunities for technological advancement, sustainability, market diversification, and R&D, Turkiye can strengthen its role in the global aluminium market and foster deeper collaboration with the EU.
south-east european INDUSTRIAL MARKET 14 The food processing industry in Serbia and Montenegro is a vital component of the region's economy, rich in tradition and steadily adapting to modern trends. With a history deeply rooted in agriculture, both countries possess a wealth of locally sourced ingredients that form the foundation for a diverse range of food products. From dairy and meat to fruit, vegetables, and processed grains, Serbia and Montenegro have long been recognized for their high-quality production of processed foods. Serbias food processing sector is driven by its agricultural strength the country is the largest agricultural market in the Western Balkans. Serbian meat, dairy, and fruit products have long gained recognition in European and international markets. Montenegro, while smaller in scale, has a growing food processing industry that leverages its coastal and agricultural resources to produce high-quality seafood and traditional specialties. In Serbia and Montenegro food processing technologies, factories, and equipment have seen significant modernization in recent years, reflecting the region's commitment to improving production efficiency and product quality. The food processing industry in both countries utilizes advanced technologies in areas such as pasteurization, fermentation, packaging, and automation, allowing for the large-scale production of products ranging from dairy and meat to beverages and snacks. Many factories are equipped with state-of-the-art machinery that ensures precision in processing, minimal waste, and adherence to international food safety standards. Furthermore, both countries are increasingly investing in sustainable practices, including energy-efficient systems and environmentally friendly packaging solutions. While some older, traditional production methods are still in use, there is a strong trend toward modernization, enabling Serbian and Montenegrin food products to meet the rising demands of both local and international markets. The future of the food processing industry in the two countries looks promising, with continued investments in technology, sustainability, and innovation poised to drive growth and enhance competitiveness. Food processing in Serbia and Montenegro Serbia's food processing industry Approximately one-third of Serbia's total processing industry is made up of the food processing sector. Nearly 90% of the more than 20 000 food businesses that are now in operation are micro, small, or medium-sized firms. Over 120 000 people work in this industry. Grain, oilseeds, dairy, meat, fruit, vegetables, wine, and confectionary are the biggest subsectors in Serbia in terms of value. The Serbian market, which is relatively small, generates about USD 8 9 billion in retail revenue annually. Over 80% of the retail market is controlled by foreign companies. Only about 20% of the Serbian market is made up of domestic retail chains. Serbia's food processing industry is vital for food security, employment, and rural development. Its potential for inclusive and people-centered development can be enhanced through better understanding of market dynamics, technological advancements, and strengthened policy implementation. Although results are improving, there is room for improvement in mobilizing small-scale producers, as food systems play a significant role in Serbia's economy. The growth of exports of both primary and processed food products provides evidence of the competitiveness of Serbian production in international markets and of significant potential to further leverage the sectors growth to create jobs and income. Produced and frozen fruit and vegetables, fruit juices, confectionary, yeast, brandy, processed fruit (jams, purees, and jellies), sweet corn, wine, cheese, mineral water, and baked goods are among Serbia's top agricultural imports, according to the Internation Trade Administration (ITA). On the CEFTA market Serbian slaughterhouses and meat processing facilities hold a strong position. Serbia has a long history of raising livestock and preparing meat. Fresh or smoked beef and pork, along with chicken, are the most widely consumed meat items. Products like pate, several types of dry sausage, hot dogs, and smoked beef and pork are also extensively available in all grocery chains in the Balkan region. Serbia offers a variety of dairy products abroad, in addition to "kajmak," a creamy dairy spread that was first produced there. Among the most well-liked are white soft and hard cheeses, paprika in sour cream, and sour yoghurt. These products all come directly from Serbian cuisine,
south-east european INDUSTRIAL MARKET 15 Companies in this issue AQ Plastronic ..................................................................5 Handjiev .......................................................................... 3 Creation and implementation of ad projects and publishing of advertisements is done according to "Requirements to the ads in TLL Media Ltd. Channels". http://www.tllmedia.bg/en/requirements-for-the-ads Jaksa ............................................................................... 2 Lemi Trafo.......................................................................9 which has a century-old history. High-quality fresh and pasteurized milk is primarily utilized to meet high local consumption, but it is also readily available for export to neighboring Montenegro and Bosnia and Herzegovina. However, Serbian export businesses started to consider expanding into new countries, particularly Russia and Turkiye, as the domestic dairy market stabilized. Goat cheese, hard cheese, sour cream spread, and "feta" cheese have all so far found buyers in the competitive global market. Serbia requires all export-focused food processing businesses to have HACCP certification. The Montenegrin food processing sector The fact that primary agriculture accounts for a larger portion of the GDP than the food processing industry is one of the structural features of Montenegrin food production. The food manufacturing industry has grown steadily during the past decade. Over 6% of the workforce was employed in the agriculture sector, which also generated 10% of the GDP's value added. Over the next years, it is anticipated that domestic consumption of wine and fruit will rise. Numerous legislations have been passed by Montenegrin authorities to encourage foreign direct investments in the nation's economy, particularly the food industry. The second-largest manufacturing sector in Montenegro is the food, beverage, and tobacco industry. Meat and sausage production has been steadily rising over the past few years, whereas food goods including pasteurized milk, beer, fruit juices, and non-alcoholic beverages have been declining. The food industry's main pertinent sectors include the bakery sector, the dairy and meat sectors, and the processing and beverage manufacturing of fruit and vegetables. Over the past few years, the number of Montenegrin businesses operating in the country's food industry has increased steadily. Montenegro's agriculture is quite varied, with tobacco and vegetable cultivation in the country's middle and citrus and olive groves along the shore. The dairy industry alone accounts for the largest portion of agricultural value (about 23% of assessed value). Dairy factories process only 15% of the primary milk produced. The northern region is the center of production. The bulk of dairy capacity is dispersed over the Central region. Every year, over 17 000 tons of meat are produced domestically, making up almost 40% of the country's total meat consumption. Approximately 20% of the over 300 agricultural-industrial businesses are involved in the production of meat. The overall yearly value of fruit and vegetable production is expected to be around EUR 117 million, with a volume and value of about 290 000 tons per year. The Central region of the country is the area most crucial to the production of vegetables. The industry is widely distributed, lacks appropriate specialization, produces mostly for its own consumption, and sells excess. Of the approximately 100 processing facilities, around ten play a major role and hold a substantial market share, while the remaining factories are smaller. Montenegro's food safety laws govern the production and distribution of food products, ensuring safe practices across all stages. The legislation covers plant and animal-based food, as well as composite food made from both. It also outlines labeling requirements for additives, enzymes, flavorings, and supplements, and hygienic guidelines. Businesses in the food sector are subject to rigorous certification and quality control procedures. The National Council for Food Safety Assessment is the primary organization for addressing food product manufacturing issues in Montenegro.
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