The Defense Ministry will get RSD 660 million for the construction of new warehouses at 25,000 square meters in exchange for the storage space within Grosnica barracks in Kragujevac.
By the decision of the Government of Serbia, the barracks in Grosnica was allotted to the Ministry of Economy and Regional Development after the state had given up the planned construction of a free industrial zone in Korman field after months-long protests by landowners.
By the same decision, the Defense Ministry was ordered to immediately enable geological survey of the land and the entrance of machines and equipment required for commencement of preparation works, as well as access to that location to potential investors.
Grosnica barracks, spanning 29 ha, is about 500 meters away from Fiat’s main location in Kragujevac.
According to unofficial information, six partners of Fiat’s will start building their production halls, spanning a total of 150,000 square meters, in May 2011.
New plants are expected to be finished until September, after which the production of car parts for the new model of Fiat’s automobile will commence. The assembly-line production of the new model is planned to start in March 2012.