The Start of Construction of the Magna Steyr's New Plant

In the middle of October, the construction of a new plant for the global automobile giant Magna officially started with a solemn signing of the contract and groundbreaking ceremony in Hoče. The project is one of the largest investments in Slovenian history. To be entrusted with this project by such a distinguished international automobile company is a considerable recognition for the Slovenian construction field and Pomgrad, as the main performer of the works to be carried out.

The first project phase, estimated at 146.4 million euros, will entail the construction of the paint shop near Maribor and the employment of 404 workers by the end of October 2022 at the latest. Pomgrad has started the preparatory works at the beginning of October. The production is set to be launched at the beginning of 2019.

Because the construction work began after several months of delay, the construction of a new high-tech industrial facility presents a special logistical challenge. “The deadline is contractually at the end of November 2018, when the hall is expected to be finished. We initially planned to start works in May of this year. This delay presents a challenge for our company, yet we hope to make up the lost time with optimization, adjustment to the work, and the implementation of more shifts,” said Igor Banič, Pomgrad's Chairman of the Board, at the groundbreaking ceremony at the construction site, accompanied by the Prime Minister, the Minister for Economic Affairs, Mayor of Hoče, and representatives from Magna Steyr.

To make up the time needed for the completion of works, Pomgrad manufactured the concrete construction's basic elements ahead of time in its manufacturing facilities. The first phase of the ground works requires the use of mostly mechanical machinery and, therefore, only around 100 workers are present at the construction site, with an expected increase to 500 later on. The project is one of the largest investments in Slovenian history. To be entrusted with this project by such a distinguished international automobile company is a considerable recognition for Pomgrad and the Slovenian construction field as well as a valuable reference for future projects. “Working for a group like Magna represents an important step forward, even though we have already performed works for quite a few foreign corporations here in Slovenia. This will widen our opportunities in this region,” added Igor Banič.

Magna decided to construct a new factory in Slovenia because of new orders for the construction of vehicles from distinguished automobile manufacturers. They decided on the location in Hoče due to its strategic position between an airport, highway, and railway network as well as its staff pool. Magna Steyr said at the signing of the contract that they pledge to make an investment of at least 100 million euros over the following ten years and create at least a thousand new jobs in the vicinity of Maribor. That is why the start of construction represents a new development initiative not only in the Štajerska region, but also other regions.