Foreign companies interested in acquiring Simpo and Yumco

Local and foreign investors are interested in acquiring furniture producer, Simpo and textile company Yumco, says the state secretary at the Ministry of Economy, Dragan Stevanovic.

According to him, the two companies from Vranje are expected to adopt the Pre-Packaged Reorganization Plan, after which they will get either new owners or strategic partners.

He also says that there is an interest in privatizing MSK and Petrohemija and that both companies are profitable.

“There are talks with several potential partners”, Stevanovic added.

Want to open a company in Serbia? Click here!

When asked about subsidies per new job created by a foreign investor, Stevanovic said that the average amount is between 5,000 and 5,500 euro.

In undeveloped municipalities, the amount is up to EUR 3,000, and in developed ones, it is EUR 7,000.

“With this measure, we have helped reduce the unemployment rate from 26% to 11.3%, and we have gone from having a budget deficit to having a surplus”, Stevanovic added.

The salaries in the factories opened by investors, as he said, need to be 20% above the minimum wage according to the law.

As he says, so far, Serbia has investments that have created a number of jobs, but the strategy now should change towards capital-intensive projects.

“This means that investors such as Zumtobel and Alboni, where salaries exceed 600-700 euro, will be subsidized – Stevanovic says.

He adds that, in 2018, 24 agreements with investors were signed, 11 with foreign and 13 with local ones.

“The problem is that local investors don’t have work-intensive projects, such as Leoni or Yura have, where you have between 1,000 to 2,000 employees as opposed to local companies with100 to 300 jobs”, Stevanovic explained. 

This year, the state has allocated 1.7 billion dinars for the development of entrepreneurship, and if necessary, another 300 million dinars will be provided, as the development of small and medium-sized entrepreneurship is the key to the country’s development.

(B92, 12.03.2019)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published.

scroll to top