Construction of exhaust system factory to start soon in Subotica – German Boysen planning to invest close to EUR 60 million

The construction of a new facility at the business zone in Subotica, where more than 500 workers will be employed, starts in the upcoming days. The German company Boysen, a world leader in the production of exhaust systems for the auto-industry, will build a facility there.

An investment of close to EUR 60 million, which Boysen Abgassisteme plans to invest in its production facility over the next five years, is the biggest foreign investment in Subotica so far, as Mayor Bogdan Laban reminded, adding that the City Assembly of Sombor had made a very important decision for the future of the city by providing the investor with land at the Business Zone without compensation. Boysen has production facilities on all continents, and the investment in Subotica, as Laban said, is important for the creation of new jobs as well as the economic development of the whole region.

– I am sure that this will raise the productivity of not just Subotica, but the neighboring places as well. It is certain that the entire economy of northern Vojvodina will rely on this factory, as this is pure production – the mayor said.

The part of the opposition that attended the session did support the decision to provide the land without compensation, but the head of the parliamentary group of Pokret Gradjanske Subotice, Jene Maglai, said that it was the last time they would do so. The city needs to support local companies and companies which invest in development, Maglai believes.

– We are supporting this kind of an arrangement for the last time. We believe that this city and this state need to set aside much bigger resources for local entrepreneurs and companies in the future and minimize the helping of foreign investments, especially investments such as these, where cheap, manual labor force is employed.

The land, owned by the city, is provided without compensation, making for a direct loss for the city budget of EUR 1.14 million, which would be the price of the land if it was being sold. On the other hand, estimates say that the local self-government will earn around EUR 1.2 million over the next five years from income, property and eco taxes.

Friedrich Boysen GmbH & Co. KG

Boysen Abgassysteme d.o.o. Subotica

Grad Subotica

Boysen

City Assembly of Subotica

construction of factory in Subotica

construction of factory

Business Zone Mali Bajmok

production of exhaust systems

exhaust systems for automotive industry

Jene Maglai

Bogdan Laban