German automotive supplier Dräxlmaier plans to close its factory in Zrenjanin, Serbia, by the end of March 2027, putting approximately 1,100 jobs at risk. The decision will end nearly two decades of manufacturing operations in the northern Serbian city.
The company informed employees that production projects would end by January 2027, followed by the complete closure of the facility two months later.
Dräxlmaier, which manufactures wiring systems and other automotive components, said it had been unable to secure a new project that would allow the factory to continue operating.
Factory Closure Threatens Hundreds of Jobs
The closure will affect one of Zrenjanin’s major industrial employers.
According to Serbian public broadcaster RTS, the factory currently employs approximately 1,100 people. At its peak, the facility had a workforce of around 6,500.
The company began operating in Zrenjanin in 2008 and gradually expanded its production capacity over the following years.
However, declining orders and uncertainty surrounding future automotive projects have affected its operations.
In a notice to employees, company management explained that efforts to secure a sustainable future for the facility had been unsuccessful.
The company plans to gradually reduce production through January 2027, affecting approximately 85% of the remaining workforce.
A smaller team will continue working on activities necessary to complete the closure by the end of March.
Dräxlmaier said employees would receive severance payments in accordance with the company’s redundancy program and collective agreement.
The exact number of employees who will ultimately lose their jobs has not yet been confirmed.
Hopes for Electric Vehicle Projects Fail to Materialize
The announcement follows earlier efforts to preserve jobs at the Zrenjanin facility.
In 2025, Dräxlmaier began reducing its workforce after warning that the factory faced an uncertain future.
However, the company temporarily suspended a planned redundancy program affecting 359 employees in 2026.
At the time, management expressed optimism that new electric mobility projects could help maintain production in Serbia.
Those expectations ultimately failed to materialize.
According to Serbian media reports, the company was unable to secure the additional automotive contracts needed to keep the factory operating.
The closure comes amid changes in Europe’s automotive industry, where manufacturers and suppliers are adjusting production plans and investment priorities.
For Zrenjanin, the immediate concern is the future of the remaining employees and the economic consequences for local households.
The factory has been an important source of industrial employment in the Central Banat region for almost two decades.
Although other companies have announced investment plans in Zrenjanin, there is currently no confirmation that they will absorb workers affected by Dräxlmaier’s departure.
The planned shutdown marks the end of a significant chapter in the city’s automotive manufacturing industry.
