Over six million euros of state aid for a new factory in Serbia, News
The State Aid Control Commission estimated that the subsidy of 6.4 million euros, which was awarded to the company United Alloy-Tech Europe in Sabac, is in accordance with the rules for granting aid.
The company received assistance in support of the construction of a new factory in the manufacturing sector for the production of parts of the automotive industry by casting aluminum in Sabac.
The draft agreement on the allocation of incentive funds, which was submitted to the Commission, was concluded between the Ministry of Economy and United Alloy-Tech Europe Sabac.
United Alloy-Tech Europe was founded on January 13, 2021 and is owned by the investor, the German company Minth GmbH.
The project, as it is stated, will employ at least 161 new workers for an indefinite period of time until the end of 2023, and the company has an obligation to invest at least 50 million euros in the company’s tangible and intangible assets within the same period.
The draft contract also stipulates that the company will not reduce the total number of employees for an indefinite period of time below 161 in the period of five years from the completion of the investment project.
The company also undertakes to, after fulfilling the employment obligation, regularly pay the basic salary to each new employee, which is at least 20 percent higher than the minimum salary.
Initial investments and newly created jobs related to investments, as stated in the draft contract, must remain in the same area, for at least five years after the end of the project.
The value of salary costs for newly employed persons related to the investment in the two-year period after reaching full employment envisaged by the investment project will cost at least 2.7 million euros, the Commission’s decision reads, Nova Ekonomija reports.