Contract with "Iveco" prior to end of year - verification of partnership with "Magneti Marelli" at beginning of year 2009

Following this week's signing of the Memorandum of understanding with Italian companies "Iveco" and "Magneti Marelli", the contract on forming of the joint venture should be signed by "Iveco" and the Government of Serbia by the end of the year.

The same contract with company "Magneti Marelli" will, most probably, be verified at the beginning of the next year. Italian partners will be the owners of 70% of both joint ventures, while the Republic of Serbia will own 30% of capital in each of them. Total investments in forming of joint ventures with "Iveco" and "Marelli" amount to 240m EUR, 60m EUR of which will be provided by the Government of Serbia.

"Iveco" and "Magneti Marelli" will have production units built in Kragujevac's Kormansko field. "Iveco" will use these units to produce 2,200 buses a year, while "Marelli" will be producing car parts, components and electronic systems for the needs of "Fiat" and "Iveco" in Kragujevac, as well as for export to foreign markets.

According to the plan, these factories should have about 2,350 workers. In addition to bus production in the new factory in Kormansko field, "Iveco" will also organize production of fire and special military vehicles in "Zastava Trucks".