The German company, Hansgrohe SE, which produces sanitary equipment, signed a contract on Friday stipulating construction of a faucet factory in western Serbia.
The 85-million-euro factory in Valjevo will employ 1,000 people.
The production plant will span 130,000 square metre, and its construction will begin in 2022. The plan is to launch production in 2023.
The President of Serbia, Aleksandar Vucic, said that the German company received 15 million euros in state subsidies.
Hans Jürgen Kalmbach, Chairman of the Executive Board of Hansgrohe SE, said that the factory in Valjevo was the most important investment in the company’s 120-year-long history.
„This is a turning point for us. Apart from the existing plants in Germany, this will be the most important pillar of production for the European market,“ Mr. Kalmbach said.
As the main advantages of investing in Serbia, he mentioned the quality workforce, a good chain of regional suppliers, and the construction of a nearby motorway.
Hansgrohe SE employs close to 5,000 workers and 70 percent of production in Germany, France, China and the USA. The company exports to more than 40 countries.
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