The production of equipment for connecting wires and cables has become a significant industrial sector in Serbia, driven by the growth in electrical, telecommunications, construction, and automotive industries.
The Serbian market is home to a mix of local companies and subsidiaries of multinational corporations, all focused on producing connections, connectors, cable joints, and insulating materials used in various sectors like the automotive and energy industries. Engineer Ivan Lukić highlights that the automotive sector is the largest consumer of this equipment, particularly due to the rise in production of electric and hybrid vehicles.
“Demand also comes from telecommunications and construction, with a significant portion of products being exported, mainly to European Union countries. Producing these components requires high-tech equipment, including automated systems and precision machines, along with compliance to international standards like ISO 9001 and ISO 14001,” explains Lukić.
The development of this sector in Serbia is fueled by foreign investments, attracted by lower labor costs and a favorable business environment. This creates competitive advantages over Western European countries. However, domestic producers face strong competition from Asia, where manufacturers offer cheaper products, putting pressure on both price and quality. A significant challenge for local companies is the shortage of qualified labor, as the production of cable equipment is specialized and requires professional technical staff.
Looking ahead, Lukić believes the future of the industry in Serbia lies in aligning with global technological trends, such as electrification and digitalization. “Electric vehicles and renewable energy sources demand high-quality cables and connectors, creating an opportunity for innovative companies capable of meeting these challenges,” he says.
According to data from the credit rating company CompanyWall, the wire and cable equipment sector shows great potential, as profits have increased year over year. In 2023, all 18 registered companies in the industry earned a total of 2.34 billion dinars (2,340,968,000 RSD).
Aptiv Contract Services doo from Leskovac topped the list of biggest earners in the sector. Active in the domestic market since 2017, this large company posted a profit of 1.22 billion dinars in 2023, making it the most successful in the field of wire and cable equipment production. In 2021, its profit was 968,796,000 dinars, while in 2022 it dropped to 438,969,000 dinars.
Another Aptiv-owned company, Aptiv Mobility Services doo, based in Novi Sad since 2015, also saw significant success, earning a profit of 1.07 billion dinars in 2023. The company employs over 4,000 people, with a workforce of 4,256 in 2023.
Wieland Production doo, based in Belgrade since 2018, is another foreign-owned company making an impact in this sector. Despite being a small company with 117 employees, Wieland Production achieved a profit of 34.5 million dinars in 2023, placing it third on the list. This is the lowest profit recorded by the company in the past three years, with profits of 69.8 million dinars in 2021 and 77.6 million dinars in 2022.
The list of top earners also includes several domestic companies, especially small entrepreneurs. Lukić emphasizes that investments in research and development are critical for local companies to establish themselves in the global market.
“To improve exports, product quality, compliance with environmental standards, and adaptation to EU legislation are essential. Additionally, government support through subsidies for innovative technologies and automation could further stimulate sector growth. With these steps, domestic producers have the potential to strengthen their presence on international markets and attract new investors,” concludes Lukić.
