The Turkish company Erenli wie allocated state land of 67,469 square meters in Leskovac free of charge, for the construction of a production facility for liquid circulation systems in the automotive industry.
The State Aid Control Commission approved the allocation of land and ordered the Republic Property Directorate to submit to the State Aid Control Commission, within three days from the date of signing, the Agreement on Alienation of Construction Land in Public Ownership of Serbia, free of charge, concluded between Serbia and Erenli, is stated in the decision.
The market value of the land is around 1.2 million euros, the Ministry of Finance estimated.
The contract stipulates the obligation of the user (Erenli company) to invest 16.6 million euros in connection with the investment project and to employ 338 new employees for an indefinite period of time.
The company will also undertake not to reduce the number of employees within a period of five years from the date of completion of the Investment Project, as well as not to sell plots subject to the contract to a third party before the expiration of five years from the date of completion of the Investment Project.
The agreement also stipulates that at least 25 percent of the company’s investments must be financed from its own funds, ie from funds that do not contain any state aid.
The company is also obliged to keep the initial investment in the same area for at least five years from the date of completion of the investment project.
Erenli was founded in Leskovac on May 13 this year and is owned by the company ERENLI KAUCUK from Turkey.
The commission states in the decision that the investor has been engaged in the production of rubber parts in the automotive sector for Tier 1 and Tier 2 companies since 1959. It also provides its customers with engineering and testing services, for which it received a research and development center certificate in 2016.
Erenli’s main products are cooling and heating systems, CAC hoses, emission control systems and oil cooling hoses.
The investment project states that the purpose of the investment in Leskovac is the construction of a production facility for the production of liquid circulation systems in the automotive industry, a factory with a total area of 15,745 square meters.
The plan is to produce mixtures in the new facility and start a production line for the production of plastic pipes.
It is written that the beginning of construction was planned for September 2021, Nova Ekonomija reports.
