Paracin ready to build 20,000 m2 hall – Final decision of Delphi on investments in municipality in January 2017

Delphi Packard has sent a memo to the municipality of Paracin asking to prepare a statement on the possibility of financing a facility larger than previously planned and with more employees as well. The president of the municipality of Paracin, Sasa Paunovic, explained that a factory with 15,600 m2 and 1,500 workers had been discussed initially, and that the possibility o the construction of a facility with 20,000 m2 and 2,400 employees was being considered at the moment.

To clarify, the municipality had previously expressed preparedness to raise a production hall in the Zmic Industrial Zone for the American investor, most probably to be leased. Delphi, which produces electrical and electronic equipment for vehicles, already has a factory in Novi Sad.

– We have been negotiating with Delphi for nearly a year and there have been numerous meetings. What follows now is to prepare an estimate of the exact amount of the investment, selecting a commercial bank capable of shouldering such an investment and negotiations with the Development Agency of Serbia about state subsidies. Delphi should then reach the final decision on whether the facility is to be built in Paracin under those conditions or not – Paunovic said.

– We have started constructing the infrastructure for that section of the Industrial Zone. Streets are being built, a power line has been installed, and we will add another one now, due to a bigger capacity of the factory – he added.

Paunovic says that Delphi should reach the final decision during January, so that the factory could start being built in 2017, as the memo says that the production should start in the first quarter of 2018.

– The construction of the facility would cost around EUR 10 million. That’s a large amount of money, but it would pay off through leasing the facility. It shouldn’t prove to be a big burden on the municipality’s budget, as we’re taking out a long-term loan. Our interest is to employ as many workers as possible. The municipality would benefit from both the lease of the facility and the wage tax – Paunovic explained.

He said that the municipality of Paracin will be fully cooperative and do everything that’s being asked of it.

Aptiv Mobility Services doo Novi Sad

Razvojna agencija Srbije

Delphi Packard

Delphi Paracin

Sasa Paunovic

Zmic Industrial Zone

Delphi investments in Paracin