Cutting costs in Slovenia led Boxmark to build a new manufacturing site in Bosnia-Herzegovina. Boxmark Leather started building a new production site in the country’s North-East area. The operation follows news of the cuts the company made in Slovenia, specifically in Murska and Sobota, where it decreased the production capacity and cut personnel.
New manufacturing site in Bosnia
The Austrian company that manufactures leather for seating in cars, boats and airplanes, is also a third-party contractor. As reported by lukavacki.ba, Boxmark’s management has placed the first brick for the new building in the city of Lukavac. The site will be divided in two sections: one will be 7.500 square meters, while the second will be 15,000. The company will use the site to manufacture seats for the automotive industry.
Shutdown
Boxmark had announced in November 2019 that it planned on shutting down one of the plants in Slovenia, located in Murska Sobota. In July, due to the general economic slowdown and lack of orders, the company had presented a plan to cut 280 people from the plant. GM Marjan Trobiš explained, to Radio Rtv, that orders had decreased by 40% for the automotive segment, and by 80% for airplanes. In that same occasion, Boxmark also stated it planned on moving production to Croatia and Bosnia, while maintaining its research & development center in Slovenia, in Kidricevo.
Read also:
- Boxmark continues to cut jobs: 280 more people laid off in Slovenia
- Boxmark shuts down a plant in Slovenia: its only production site is in Kidricevo
