MTU to postpone commissioning of its factory in Nova Pazova by six months

The German company MTU will launch its operations in Serbia six months later than earlier planned due to the global economy, the company told the Tangosix website.

According to MTU, the initial plan, before the pandemic, was for the facility in Nova Pazova to open in mid-2022.

“It’s still early to say how our facilities and expansion plans will be affected by the pandemic. Still, when the COVID-19 crisis began, we notified the Government of Serbia that we expect to launch our company in Serbia later than anticipated, at least six months after the initial date, which was mid-2022,” the company says.

Discover the most important foreign investments in Serbia in 2019: click here!

All the other parameters of the project remain as planned, for now, considering that the entire global aviation industry has slowed down, MTU added.

The Serbian authorities have given land plot, worth EUR 6.25 million in Nova Pazova, to the company for free. The land plot will be used for the construction of a facility for the maintenance and repair of aircraft engines and the accompanying services.

MTU also undertakes to cover at least 25% of the justifiable costs from its own funds or other funds not entailing state aid, whereby justifiable investment costs are investments in new equipment.

The business plan entails the construction of capacities for MRO (maintenance, repair and operations) of around 22,000 square metres.

The investment project entails an investment of EUR 4.8 million in the infrastructural equipping of land, EUR 45.9 million is reserved for the design and construction of production capacities, and EUR 50.2 million is the value of the planned investment in new equipment.

(Nova Ekonomija, 08.07.2020)

https://novaekonomija.rs/vesti-iz-zemlje/korona-odla%C5%BEe-izgradnju-fabrike-aviomotora-u-novoj-pazovi

 

This post is also available in: Italiano

Share this post

scroll to top
More in foreign investments, Germany, MTU
German media: Serbia is not controlling the virus but the virus is controlling Serbia

Germany’s border still closed for Serbian citizens

Close