Slavonia, a historically underdeveloped region in eastern Croatia, is experiencing a significant economic revival. Backed by EU funds and national investment, cities like Osijek are attracting major global tech companies such as IMS Gear and Jabil.
With infrastructure upgrades and growing job opportunities, Slavonia is fast becoming a key hub for high-tech manufacturing in Southeast Europe.
Economic Recovery in Slavonia Gains Momentum
Slavonia is slowly undergoing an economic recovery. Through the development project “Slavonia, Baranja and Srijem”, a significant amount of government money, as well as funding from European sources, has been channelled into the region.
Numerous infrastructure projects have been completed, transforming the face of eastern Croatia. Recently, an increasing number of foreign companies have also been arriving there.
New High-Tech Factory for Osijek
The Nemetin business zone in Osijek will soon be home to another important factory producing high-tech industrial products. Following the arrival of Jabil, the American company that employs 250,000 people worldwide and generates €30 billion in revenue, Slavonia will now welcome a German giant.
The company in question is IMS Gear, a leading player in the field of transmission and gear technology, particularly in the automotive sector. One in four cars worldwide contains a component produced by them. The company operates plants across the globe and has an annual revenue of approximately €265 million in Europe alone.
First European Factory Outside Germany
In Croatia, the Germans will operate under the name IMS Gear Croatia, which will be their first European production facility outside their home country. Two years ago, they purchased land from the city of Osijek—covering 33,442 square metres—for a price of €1.1 million. The factory is set to commence operations soon and will initially employ up to 300 workers.
The company’s headquarters in Donaueschingen, Germany, was recently visited by Osijek’s mayor, Ivan Radić. “We are pleased they chose Osijek as their location for further development, because Osijek is a city that is definitely growing,” he said, highlighting that this is further confirmation of the economic growth and investment potential of the Slavonian capital.
Components Crucial to the Automotive Industry
The components they produce are key to various industrial and automotive systems, from electric power steering to brake mechanisms and seat adjustment systems. In total, the company employs just over 3,000 people across its operations in Germany and worldwide.
It is worth recalling that American firm Jabil, whose factory has already begun operations, produces medical prosthetics, microchips, and motherboards for the automotive industry. Initially, they plan to employ up to 1,500 people, with a long-term goal of 4,500 employees. These are significant numbers for both Osijek and Croatia. Like IMS Gear, Jabil is considered a high-tech company.
Croatian Returnees Among the Workforce
This was evident even in their hiring practices. They are employing a large number of engineers, many of whom were first sent for retraining. And, most interestingly, nearly 70 percent of those selected were Croatian returnees from abroad. Thanks to their knowledge and acquired experience, they clearly had an advantage in securing employment.
Osijek and Slavonia Changing Their Outlook
Thus, Slavonia and Osijek are gradually changing their outlook. The city is connected by motorways to Zagreb and the rest of Europe; a motorway through Bosnia and Herzegovina will lead them to the Croatian coast and the port of Ploče. They also have their own airport, as well as a river port on the Drava, which connects via the Danube to Central Europe and the Black Sea.
And yes, Osijek recently completed a €30 million wastewater treatment plant with the help of EU funding, making it the most modern in that part of Europe. Many positive developments have occurred recently in Osijek and Slavonia. The arrival of prestigious foreign tech companies is confirmation that things are heading in the right direction. Some might say – finally.
