Six foreign investors will be granted a total of 22.8 million EUR of incentives for investing in Serbia – the Ministry of Economy says.
The decision was made at the meeting of the Government’s Council for Economic Development on Monday, 10th October, at which it was also said that the investors undertook to hire 6,600 workers and that their total investments would amount to 90 million EUR. The funds will go to Kromberg in Krusevac, Leoni in Nis, Pretty Group in Sombor, Endava in Belgrade, Coficab in Pecinci, and Aunde in Jagodina.
The total amount set aside as incentives for new jobs, investments and gross salaries in the following two-year-period will amount to 22,862,237 EUR while the average incentive per employee will be 3,461 EUR – the Ministry says.
The state will grant these incentives in accordance with the Investment Law with the purpose of attracting new investments and creating new jobs.
Some of the said investors are going to invest in Serbia for the first time ever, while others have been operating here for some time and are planning new investments. Most of the investors come from the automotive industry.
Austria-based cable systems and plastic parts supplier, Kromberg plans to build a vehicle cable factory in Krusevac, create 2,500 new jobs and invest close to 26 million EUR in the process.
One of the global leaders in production of automotive cable installations, Leoni AG, which came to Serbia in 2009 and has production facilities in Prokuplje and Doljevac, plans to open a factory in Nis. The planned investment is 22 million EUR and the company wants to hire 2,200 new workers.
The family run business founded in Bangladesh in 2001, Pretty Group plans to open a knitwear factory in Sombor in which it will invest 14.4 million EUR and create 1,100 new jobs in the following few years.
A member of the British Endava Group, the Endava Company plans to invest 4.4 million EUR in expanding its software development capacity in Belgrade. The money will be spent on new equipment, premises and jobs, i.e. 324 new jobs in total in the course of the next couple of years.
Tunisia-based wire and cable manufacturer and a member of the Elloumi Group, Coficab chose the village of Pecinci to open a new factory from which it will export its products to Central and Southeast Europe. The company has already purchased a brownfield facility which used to belong to Rolomatik and it plans to invest 12.4 million EUR while creating 111 new jobs.
Italian company Anude, which came to Jagodina in 2012 where it produces car seat covers, plans to implement a 3.4 million EUR investment in Kocino Selo. After this is done, the company will have over 600 employees in Serbia. Currently, they have 254 workers in their Jagodina factory and the plan is to hire another 370.
Better supervision of investors
Serbian government has been criticized on several occasions for basing its policy on attracting foreign investors on ‘the stick and carrot’ principle, or rather paying foreign investors to come here. Economy experts point out that this policy could be beneficial in the short run and that there are some positive effects as a result of it (like creation of new jobs), but in order to keep investors here long-term, the government needs to change the fiscal environment. The Ministry of Economy points out that the incentive system and the allocation criteria have been significantly changed and improved compared to the time when the government started to grant incentives.
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