Agreements signed with nine state-backed companies - 6 million euros for another 787 jobs in Nis

Serbian Ministry of Economy signed an agreement yesterday with Italian Dytech on the construction of a factory for the production of fluid technology components for automobiles in Nis, in which EUR 13.3m will be invested.

- Serbia will grant an aid of about 4 million euros to the investors from Italy, that is, 10,000 euros per employee for the creation of 400 jobs at the new factory - it was said after the signing of the agreement.

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said after the signing of the agreement that October 6 represented the beginning of industrial development in Nis.

Dinkic signed a total of eight agreements yesterday in Nis with domestic and foreign companies that would get incentives for new jobs.

Based on these agreements, 787 jobs will be created, while the employers will get about 6 million euros worth of incentives from the Ministry of Economy. Total investments of the six domestic and two foreign investors in the new units in Nis, including Dytech, will amount to 24.3 million euros.

Dinkic estimated that investors' interest in Nis was huge and that it was necessary that both government and local self-government did everything for the economic development of the city.

- Soon the problem of Nis will be the lack of industrial land for new investors. I think that Nis will get its new beginning - said Dinkic.

Dytech CEO Giuliano Zucco said that incentives existed in many countries of the world, but that that aid had no purpose if it was not aimed at general social development.

- We are not here to relocate the production from Italy but to try to answer the challenges since the zone of the Balkans is gaining in importance and becoming an interesting market. We are here to start on time - said Zucco.

Dytech plans to start the factory construction in few weeks and that the factory be put in operation in mid-2011. Total value of the investment is 13.3 million euros.

Nis Mayor Milos Simonovic and Mr. Zucco yesterday signed the Agreement on rental of equipped building land first.

The incentives for the creation of new jobs will be granted to Dytech, Bard, Euro Design, High Ararat, Harder Digital, MBN bakery, Ming and Sea Food Serbia.

During the summer, the Ministry of Economy concluded an agreement with South Korean Yura company on the opening of a new factory of car parts in Nis. For the employment of 1,500 people, that company will get the subventions in amount of EUR 7,000 per each employee.

According to the data provided by the Ministry of Economy of Serbia, total value of that investment in the factory, of which construction has already commenced, amounts to 15 million euros.