Iskra Mehanizmi finalising production part of new complex
The development supplier for mechatronic solutions in the automotive, medical and home appliance industries, based in Lipnica near Radovljica in northern Slovenia, launched the investment last August.
Iskra Mehanizmi director general Marjan Pogačnik told the STA on Thursday that the project had not been concluded yet, but "the production part, which is the largest by area and the most important for us operationally, is being finalised."
Two production lines have already been moved to the new complex, with the company waiting to get an operating permit, expected to be issued in a month.
It is then when the rest of the production planned to be relocated will start to be moved, mostly from the location in Kamnik and also from the plant in Lipnica.
Iskra Mehanizmi also plans to move offices to Brnik, but the construction of this part has slowed down and adjusted to the situation in the market, as the company is facing a drop in orders.
Pogačnik noted that the coronavirus crisis had hit the company hard, as a 25% drop in production was recorded in March and a 40% drop in April. Almost half of the 700 employees have thus been on temporary lay-off.
He added that the situation in the market was unpredictable, but the company was not thinking about reducing the number of employees as of yet.
The company operated poorer than expected last year, generating EUR 90 million in revenue and posting EUR 3 million in profit, or EUR 1 million less than in 2018. This year started off well, but the first effects of the crisis started showing already in March.