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Draxlmaier

DMM Draxlmaier Manufacturing Macedonia DOOEL import-export Kavadarci

Realised

Investment value

Announced

35.000.000 euro

Invested

24.580.671 euro

Employment

Announced

4.000

Employed

5.507

German company Lisa Draxlmaier GmbH opened its factory in the industrial zone Telot, in Kavadarci, in late 2012. The investment contract it signed with the Government, in July of the same year, stated that the investment in the factory for cable systems for the automotive industry will reach 35 million euros and employ 4,000 people.

This company is among the few that underestimated the announced number relating to the opening of new jobs, and according to data from the Central Register, by the end of 2015, they had 5,730 employees, while in 2016 they reduced the number to 5,507.

However, after the attempted employees strike, which resulted in the firing of 60 workers, the accusations for paying their workers low wages and providing poor working conditions, despite the denials of the company, Draxlmaier is often pointed out as an illustration of the treatment of Macedonian workers in foreign companies.

According to the Register of direct investments, the founding capital of DMM Draxlmaier Manufacturing Macedonia is 4 million. The total assets of the company, however, reached 36.4 million euros, of which 24.6 million were non-current assets.

In 2015, the factory cashed 50.6 million euros from sales revenues, which is 16.4% more than in 2014, while their profit in this period rose by 19% to 2.34 million euros.

In 2012, the company received state aid. However, the decision issued by the Commission for Protection of Competition does not contain the specific amount of assistance. What it does say is that "assistance in the form of XXX that the Government plans to award to the company DMM Draxlmaier Manufacturing Macedonia is intended to support the implementation of the investment project for XXX."

Interestingly, the factory which covers 52,000 square meters was built by a local partner company and given to DMM Draxlmaier Manufacturing Macedonia through long-term leases.

Draxlmaier has branches in the US, Serbia, Moldova, China and Macedonia.

Last update: 04 april 2017

Date of announcement

december 2011

State aid

Location

Country of origin

Investments in the same location