The construction of a new production facility in the Subotica commercial zone will begin in the next few days and more than 500 workers will be employed in the factory. The plant will be built by a German company Boysen Abgassisteme, the global leader in the production of vehicle exhaust systems.
The investment of nearly 60 million euro, which the company plans to spend on its production plant in Subotica over the next five years, is so far the largest foreign investment in Subotica, underlined Mayor Bogdan Laban, stating that the city’s Assembly gave Boysen the land plot for free since the investment is very important for the future of the city.
The world leader in the production of exhaust systems for the automotive industry has production facilities on all continents and the investment in Subotica is important not only for the economic development of the entire region, but also for job creation, the Mayor added.
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Some of the opposition MPs, who participated in the Assembly session, supported the decision to sell the land to the German investor at no cost, but Jena Maglai, head of the Civic Movement, said she voted for such an arrangement for the last time, because she believes that the city should support more local businesses and those that invest in development.
“This is the last time that we support such an arrangement and the decision to give the land free of charge to foreigners. We think that this city and this country should, in the future, allocate much more resources to local entrepreneurs and to a lesser extent, to foreign investors, especially those who employ low-cost manual labour,” Maglai added.
If it is given for free, the land owned by the city causes a direct loss to the municipal budget of 1.14 million euro, equal to its sale price. On the other hand, the local government estimates that it will receive the revenue of 1.2 million euro in the next five years from taxes paid on salaries of Boysen workers.
This post is also available in: Italiano