German Chamber of Commerce identifies investment potential in Western Balkans metal industry

The Ulm branch of the German Chamber of Commerce has identified Bosnia and Herzegovina and Serbia as key locations for German metal industry partners in the Western Balkans. The region is highlighted for its developed expertise in metal processing, availability of raw materials, competitive production costs, and short delivery times.

Key services offered by regional manufacturers include CNC machining, welded constructions, casting technology, and surface treatment, primarily serving the automotive and mechanical engineering sectors. Many companies hold international quality certificates and utilize modern technologies, while the Pan-Euro-Mediterranean (PEM) convention rules facilitate easier trade with the EU.

However, German orders for products and services from these two countries have seen a decline. In 2022, orders from Serbia and Bosnia and Herzegovina were valued at approximately €300 million and €220 million respectively; recent figures show these have dropped to roughly €200 million and €160 million. A noted challenge for local plants is their small scale, as most are family-owned businesses characterized by high flexibility and low minimum order quantities but limited capacity for high-precision automated mass production.