Chinese company Xingyu gets EUR 16 mln in subsidies from Serbian state

The Chinese company Xingyu Automotive Lighting Systems d.o.o. has been granted EUR 16.4 million in state subsidies by the Serbian investment for making an investment of at least EUR 60 million in the construction of a factory in Niš.

The Serbian Commission for Control of State Aid has found this subsidy to be in accordance with the relevant regulation.

The Chinese investor has obliged to spend EUR 7.5 million in purchasing 16.55 hectares of land for the factory and providing an appropriate infrastructure there, EUR 32.7 million on the construction of the facilities and EUR 19.6 million for new equipment by the end of 2023, as well as on salaries for the new employees related to the investment over a two-year period, which should amount to at least EUR 13.8 million.

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This greenfield investment will receive state subsidies as it will result in permanent employment of at least 1,000 new workers for a period of five years from the completion of the investment project.

The company’s Serbian branch operates under Changzhou Xingyu Automotive Lighting Systems Co. Ltd from China, which produces car lighting, has 5,731 workers and an estimated EUR 650 million of revenue in 2018.

The state aid of EUR 16.4 million will be paid out in four instalments.

(Nova Ekonomija, 15.03.2020)

https://novaekonomija.rs/vesti-iz-zemlje/zeleno-svetlo-za-subvencije-kineskoj-kompaniji-od-164-miliona-evra

This post is also available in: Italiano

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