The Lear Company, a subsidiary of an American corporation that produces car electronics, has suspended production in Novi Sad due to the war in Ukraine, reports Danas daily.
The letter from the management sent to the employees says that there was a problem in procurement of components for production and customer orders, which led to the interruption of production. The management of the Novi Sad factory also asks the employees to show understanding for the current situation: “We ask all employees to try to understand that the interruption is only due to the current instability caused by force majeure. We all sincerely hope that this situation will be stabilized soon and we will resume operations regularly again.”
In 2019, Lear was widely reported as the absolute record in terms of how much subsidies it had been allocated by the Serbian government.
In addition to the subsidy of 9.6 million euros, the Novi Sad authorities built the company a 28,000-square-metre warehouse, for which the company pays a fee of only 2.5 euros per square metre. The Novi Sad government provided both the land for the construction of the factory and built a warehouse which cost around 4 billion dinars. The agreement is that the Novi Sad government collects a lease from Lear in the following 40 years, not counting the interest on the loans the company will have to repay.
(Nova Ekonomija, 21.03.2022)
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