German auto wiring systems maker Leoni plans to invest at least 22 million euro ($24.4 million) in expanding its manufacturing operations in Serbia, the country’s economy ministry said on Friday.
The company plans to build two new facilities in the munucipalities of Prokuplje and Doljevac, where it already runs two plants, the ministry said in a statement.
Leoni has promised to open at least 1,000 new jobs and has agreed a state support of 5.5 million euro. Under the deal, it should employ a total of 5,202 workers in the country after three years, when the two new plants should become operational. The investor is also obliged not to reduce the number of employees over a five-year period.
The new plants will produce cable systems for BMW, Jaguar and Land Rover.
Leoni is present in Serbia since 2009 and was one of the first major investments of German companies in the automotive industry.
It ranked as the 13th biggest exporter from Serbia in the first half of 2016, shipping abroad cable systems worth 72.9 million euro.
Source; IENE
