Chinese "Yto Group" to start production of tractors in Serbia

- Chinese company "Yto group" and company "Agrovojvodina mehanizacija" will start production of "yto" tractors in Novi Sad at the beginning of year 2010 - Branislav Bugarski, the CEO of the Vojvodina Investment Promotion Fund (VIP), said today (November 11, 2009).

Bugarski told "Beta" agency that the realization of the first big Chinese greenfield investment in Vojvodina would start at the end of November, when the contract on construction of the factory for production of tractors for European market would be signed in Novi Sad.

- "Yto corporation" is present in Serbia through its distributor for the market of Southeast Europe - "Agrovojvodina mehanizacija", since 2004. Since the company does not have production units in Europe, they are equally interested in the market of European Union and the market outside the Union - said Bugarski.

He specified that VIP Fund had started negotiations with "Agrovojvodina" on realization of that project six months earlier.

- The tractor assembly line will be installed in the existing halls of "Agrovojvodina". The tractors that will be assembled in the first phase will have some components made in Serbia, and our tendency is to have more than half of the tractor parts made in Serbia in order to obtain the "made in Serbia" certificate - said Bugarski.

The CEO of VIP Fund was unable to specify how many tractors would be produced in Novi Sad and what would be the value of the investment because they all agreed to reveal the details at the end of November, after the investment contract is signed.

- Our aim is to serve as an entrance to the market of European Union for the companies from the Far East - said Bugarski and specified that the production of tractors in the factory in Novi Sad would be oriented towards the EU market.