Mercer Trade investing EUR 3 million in production of laminates in Nova Varos

The president of the municipality of Nova Varos, Radosav Vasiljevic, and the owner of the Turkish company Mercer Trade, Mahmut Bayram, have signed an agreement on the lease of a part of the facility of the former furniture factory Inova in Kokino Brdo for a period of a decade.

This successful company, which deals in primary wood processing and production of solid wood panels in partnership with Istanbul's Ista Yapi San, has leased close to 12,500 m2 of business premises and three smaller side facilities on the cadaster parcel located north of the access road.

The Turkish investor has obliged to employ a total of 140 workers before the end of the lease period, whose gross monthly earnings would equal EUR 350. The agreement specifies that the first 70 full-time workers are to be employed by January 2017.

The advantage will be given to those who have been registered as unemployed for more than six months and are residents of the municipality of Nova Varos. The lessee also obliges to provide the local self-government with control and free access to documents and business premises to the end of monitoring the number of workers and possible inspection of other obligations of the lessee arising from the agreement.

The company will invest EUR 3 million in equipment and improving the production, which is mostly oriented to export to the Turkish market.

The plan is to expand the production program to encompass the production of laminates, solid panels, boards, door and window frames and other wood elements, as well as to penetrate new markets in Europe and Africa.

– We are negotiating with a successful international company. If the talks prove to be fruitful, we will have long-term plans for the Nova Varos area, in which case we would lease the remaining part of the facility of the former furniture factory. The outcome of the negotiations will be known in five to six months at the latest – Bayram emphasized on the occasion of signing the agreement and added that “two production lines for primary wood processing, on which 46 workers have already been employed, have already been installed in the facility”.

He also expects the delivery of equipment for finalizing solid wood products from Germany, following which new workers will be employed and the production intensified.

– In addition to reducing unemployment, which is one of the burning issues, the arrival of the Turkish investor will improve business activities in the area. There will be married couples among the employees, so we expect that jobs and opportunities given will make them choose to build their future in their home town instead of moving to another municipality – Vasiljevic estimates and says that there are more investors interested in leasing the remaining part of the business premises in Kokino Brdo, the repair and development of which has started recently. The amount of RSD 15 million has been provided by the Ministry of Economy for the purpose.

Mercer Trade auctioned the business premises at the public biding back in late February. The past few months have been spent specifying the content of the lease agreement, and the local authorities changed in the meantime.

Opština Nova Varoš

Ministarstvo privrede Republike Srbije

Inova Nova Varoš

Ista Yapi San

Mercer trade Istanbul

Radosav Vasiljevic

solid wood panels

laminate

laminate factory Nova Varos