The Western Balkans, in particular Serbia and Bosnia-Herzegovina, offer interesting opportunities for German companies in the metalworking sector. The metalworking industry has established itself as a key sector in both countries and is becoming increasingly important.
Serbia as an Export Hub for Metal Products
Serbia recorded a 14% increase in metal exports to over 1.2 billion USD between 2022 and 2023. Metal processing plays a central role here and accounts for almost 12% of the country’s total exports. Around 54,000 people work in over 3,900 metal processing companies, many of which are small and medium-sized enterprises (SMEs) that primarily produce for German customers.
The Serbian metalworking industry encompasses a wide range of technical manufacturing capabilities, including welding, turning, milling, and aluminum extrusion. In recent years, local companies have further expanded their technical capacities and now offer a broad spectrum of services that are in demand internationally. One example of foreign investment in Serbia is the company Bizerba, which opened a new plant in Valjevo in 2023.
Bosnia and Herzegovina as a Key Industrial Sector
Metalworking is also the most important industry in Bosnia and Herzegovina. In 2023, exports from the metal industry reached a value of 950 million USD, corresponding to around one tenth of the country’s total exports. With around 970 companies in the metalworking sector, this industry is also a central pillar of the economy in Bosnia and Herzegovina.
Strong Trade Relations and Growth Potential for German Companies
Germany is the most important trading partner for the metal processing industry in the Western Balkans. In 2023, Serbia and Bosnia-Herzegovina exported over 430 million USD in metal products to Germany. This illustrates the strong economic ties, particularly in the mechanical engineering, automotive supply, and electrical engineering sectors.
The region offers German companies not only reliable production partners but also cost-effective manufacturing options. Many companies in the Western Balkans have continuously expanded their expertise and are increasingly relying on modern machinery and equipment, some of it sourced from Germany. These developments create long-term growth potential and new business opportunities for companies operating in the metalworking sector.
The Western Balkans is a growing market with interesting investment opportunities for German companies in the metalworking sector. The region offers both experienced production partners and a dynamic economic environment that harbours great potential for long-term cooperation.
Source: GTAI (in German)
