The Municipality of Kovin and Istanbul-based company, Mel Tekstil have signed a Memorandum of Understanding this Friday, January 24.
The document is a pre-contract with the Turkish investor, whose arrival to Kovin was announced by Serbian Prime Minister Ana Brnabic in late 2019. The signing was attended by representatives of the Ministry of Trade, Tourism and Telecommunications, which has been involved in the negotiations from the beginning and which has provided funds for the Municipality of Kovin to purchase the land and the factory of the former Beko Company where the Turkish company would produce car seat covers.
The plan is for the Municipality of Kovin to renovate and lease the premises, for a period of 10 years, with the possibility of extending the contract.
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The premises span around 3,700 square metres and there is a 2.56-hectare-land plot surrounding the factory. The memorandum also defines the obligations of Mel Tekstil. Among other things, the investor is obliged to train and employ 100 workers by the end of 2020 and another 200 by 2022.
“The municipal authorities will help the investor as much as they can when it comes to the issuing necessary permits and authorizations, and the production facility itself will be reconstructed and adapted to the needs of the renter and the textile industry standards,” Sanja Petrovic, the president of the municipality of Kovin, said after the signing of the memorandum.
Mel Tekstil has production facilities in Germany and Turkey, and the plan is for part of the production, currently located in Istanbul, to be moved to Kovin, for the logistics purposes.
This post is also available in: Italiano