Magneti Marelli is coming - negotiations on rental of location in Kragujevac commenced

The representatives of Magneti Marelli, one of the world's largest automotive suppliers, arrived in Kragujevac yesterday to agree the details and sign the lease contract for the location where production for the needs of Fiat Automobili Srbija (FAS) will be organized. The preliminary talks with the Mayor of Kragujevac, Veroljub Stevanović, took place in the City Hall, and the meeting was attended by Antonio Castaldi, the Head of the Magneti project in Serbia, Diego Velini, a representative of Fiat, Nebojša Ćirić, the State Secretary, and Aleksandar Ljubić, the Adviser in the Ministry of Economy and Regional Development.

As Politika learns, the production units of one of Fiat's most significant partners will be situated on the factory grounds of FAS, in the halls of former Zastava's Mehanička Obrada (Mechanical Processing).

– That is the most realistic option, primarily because of the vicinity of FAS' automobile assembly lines – one of the members of the City Council told Politika.

Lease terms for the location and office space will be defined later, but it is for certain that Magneti will have a privileged status in accordance with the already agreed arrival of Fiat's partners in Kragujevac.

– Just like all other Fiat's suppliers, Magneti Marelli will be offered privileged terms since it is the company of strategic importance for realization of the whole project, that is, commencement of production of Fiat's new model whose assembling will start in early 2012 at the latest – says the source of Politika.

According to earlier determined plan for development of the partner network, other Fiat's suppliers should arrive in Kragujevac in early 2011 at the latest. They will be situated on Korman field. People in the city management say that, in spite of the fact that the owners of parcels are protesting because they are not satisfied with the offered price, expropriation of the land within this duty-free zone will be finished prior to end of May.

On about 67 hectares of new duty-free and industrial zone of the city, Fiat's suppliers should have between 10 and 15 brand new factories built and, thus, create nearly 10,000 new jobs. As Politika learns, Magneti will employ about 300 people.