Government urges Ikea to open factory instead of trade center

The Government of Serbia is still negotiating with Ikea on opening of the production units of that most famous Swedish furniture manufacturer in Sremska Mitrovica and Vranje.

Although the company's representatives said on several occasions that they were ready to invest in Serbia in the future and that it was not the right time for that, the Government is now trying to persuade them to change the decision. The Government offers Ikea certain benefits regarding the land for retail centers in Serbia if Swedish furniture manufacturer decides to invest in the opening of production units.

However, on the other side, Ikea says it is willing to buy the land even at the market price on auction. It is widely known that Ikea is already negotiating with some private owners of the land alongside the highway. Besides, Ikea claims that, instead of production units, it will ensure the arrival of famous trademarks in Serbia such as H&M, French department store Decathlon, French chain Carrefour, as well as department store Doityourself.

The Government should soon make the decision on changing the purpose of the land of the Cattle Breeding Institute, which drew the attention of the Swedish company. In case the agreement on construction of the factory is not reached, that building land will be put up for auction.