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Key Safety Systems

Key Safety Systems Macedonia DOOEL Kichevo

Realised

Investment value

Announced

15.000.000 euro

Invested

24.412.381 euro

Employment

Announced

1.000

Employed

710

American company Key Safety Systems, which deals in the production of airbags, has already started with production at their factory in the free economic zone Kichevo from March 2016.

During the previous two years, the company worked in an existing facility in Kichevo as a brownfield investment. It started the construction of its factory in the zone in Kichevo, with an initial investment of 20 million dollars.

In the initial phase of the investment, as announced by the Government, the company would produce airbags and create 1.000 new jobs. The size of the investment, according to the official website of TIDZ, is 15 million euros.

By the end of 2015, according to data from the Central Register, the company had 83 employees and their non-current assets amounted to 10.2 million euros. Before the end of 2016, however, the number of employees increased by 8 times and the company had employed 710 persons.

"The new production facility will annually produce three million airbags for cars and we expecting exports worth 70 million euros annually," it is written in the announcement for the investment. 

According to the Official Gazette from 2014, Key Safety Systems were given land in late 2014 in Kichevo, which they have the right to use it for up to 95 years, costing 0.1 euros per square meter or 4,215 euros annually.

In the official decision of the Government from February 2015, the company was granted state aid for 2015 and 2016 for the creation of new jobs. The state aid entailed:

- Exemption from profit tax for a period of 10 years

- Exemption from payment of personal income tax on salaries for a period of 10 years

- Exemption from payment of VAT on imports provided they are not intended for end use

- Customs exemptions and deductions

- Exemption from payment of fee for management of construction land

- Exemption from submitting a waiver of guarantee as an instrument for customs debt

- Cash grant to cover the shared costs for the construction of facilities in that area

In 2014, Key Safety Systems Macedonia had a founding capital of 5 thousand euros, and in 2016 this capital amounted to 6 million euros.

Media reported that World Bank IFC, a member of the World Bank Group, had loaned 8 million euros to "Key Safety Systems for the construction of their factory in Macedonia.

Although, in Macedonia the company was billed as an American investment, data from the Central Register show that the owner of the company is a company from Luxembourg, Luxembourg Key Safety Systems S.a.r.l, with Matthew Charles Kohn and Ralph Caspari as directors of the company.

According to the Shanghai Stock Exchange, American company Key Safety Systems was to be purchased by the Chinese automobile company Ningbo Joyson Electronics, reported news portal Plusinfo.

Last update: 23 january 2018

Date of announcement

april 2014

State aid

Country of origin

Investments in the same location