Minth Automotive Europe, based in Loznica, Serbia, has received a substantial state subsidy of 23.5 million euros to expand its production capabilities. As part of the Chinese conglomerate Minth Group, the funds will support the second phase of constructing an auto parts manufacturing factory in Loznica.
Three years ago, Minth Automotive applied for investment incentives from the Development Agency of Serbia. These incentives were approved on March 22 of this year. According to the contract with the Ministry of Economy, Minth Automotive committed to hiring at least 700 new workers on permanent contracts by the end of 2024. Additionally, the company pledged to invest at least 183.6 million euros in both tangible and intangible assets within the same timeframe.
The agreement stipulates that Minth must pay wages at least 20 percent above the national minimum and offer internships to a certain number of high school and university students. Over the 12 months before applying for the incentive, Minth’s highest combined number of temporary and permanent employees was 319.
Funding for the second phase of the factory project will be disbursed in two stages. The first tranche, amounting to 22.23 million euros (94 percent of the total funds), will be paid in 2025 after Minth provides proof of a 173.6 million euro investment and the hiring of 430 new permanent workers. The remaining funds, totaling 1,281,155 euros, will be paid in 2026 upon evidence of an additional 10 million euro investment and the hiring of another 270 permanent workers.
Per the contract, Minth must maintain a minimum of 1,019 permanent employees for five years after completing the investment project and ensure the value of their tangible and intangible assets does not decrease during this period.
Minth Group, established in Serbia in 2018, specializes in designing, producing, and selling auto parts, including equipment, decorative parts, body parts, and roof racks. The company has production bases in China, the USA, Mexico, Thailand, and Germany, as well as technical centers in China, Germany, North America, and Japan.
