Novi Sad secures a pestigious investment in the Automotive industry, supported by the Development Agency of Serbia

NOVI SAD, December 4, 2025 – The first European production facility of the Chinese giant Shanghai Huizhong Automotive Manufacturing (SHAC), one of the world’s leading manufacturers of automotive components, was officially opened today in the Kać Industrial Zone. The investment, valued at over 30 million euros, represents an important milestone for the further development of the automotive sector in Serbia and the region.

The 19,000 m² production hall, currently in the final stages of equipment installation and soon to begin trial production, is part of a larger industrial complex with planned expansions in the coming years. With this project, SHAC confirms its long-term plans and strategic confidence in Serbia as an industrial hub and logistics point for the European market.

The opening ceremony was attended by Lu Yong, General Manager of SHAC, Erik Ru, Manager of SHAC Germany, Dr. Wolfgang Blumlhuber, Senior Vice President for Procurement at BMW, Björn Lenz, Director of Volkswagen Axel Components, Lu Xiaolei, General Manager of the SHAC factory in Serbia, Gong Wei, representative of HASCO Group;, Žarko Mićin, Mayor of Novi Sad, as well as representatives of the Development Agency of Serbia.

SHAC Serbia – A European Center for Premium Brands

According to the company’s management, the Novi Sad factory will become a key European center for the production of components for major global premium brands. It has been confirmed that components for BMW will be delivered from Kać, with plans to expand cooperation with additional European manufacturers.

Photo: TANJUG / Saska Drobnjak

SHAC – A Global Leader

SHAC, headquartered in Shanghai, is part of the large automotive corporation HASCO and operates 16 production bases worldwide, annually manufacturing a broad range of components for the world’s leading carmakers. SHAC’s arrival in Novi Sad confirms the growing importance of Serbia as a new industrial base in Europe.