The Commission for Supervision of State Aid has authorized the allocation of 61,534 square metres of state-owned land in Smederevska Palanka to the South Korean company, Kyungshin Cable Europe on which the company will build a plant that will produce electronic and electrical equipment for vehicles.
The company is given this land plot free of charge.
The investor is obliged to invest no less than EUR 20 million in the factory by the end of 2022, and at least a fourth of this amount needs to come from funds that are not state aid.
Kyungshin also undertakes to create at least 700 new jobs. Also, they agree not to sell the allocated land plot to a third party before the expiration of a five-year period which starts from the date of the completion of the investment project.
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Kyungshin Cable said that the greenfield investment entails the construction of a factory spanning 11,000 square metres that will manufacture two main types of products – one of which is a battery module sensor assembly, whereas the other one is high-voltage components for electric vehicles and their batteries.
Kyungshin Cable was founded in South Korea since 1974, and the Serbian branch was formed in March 2020. The company has factories in China, Mexico, USA and Poland.
In 2018, the Korean company had a 4.2 per cent share of the vehicle car wire market, and was seventh in the world in that segment.
(Nova Ekonomija, 26.05.2020)
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