Construction of factories of Fiat's partners commences in Grosnica - Investment worth 100 million euros to employ 1,000 workers

(Grosnica)

Minister of Economy and Regional Development Nebojsa Ciric announced today in Kragujevac that seven factories of four car parts producers would be completed in Grosnica industrial zone by the year's end to satisfy the needs of Fiat Automobili Srbija (FAS), adding that they would hire around 1,000 workers.

While touring the preparation works for the construction of new production halls of Fiat’s subcontractors, which is in line with FAS’ investment project in this town, Ciric specified that the investment was estimated at approximately €100 million.

He stressed that by the end of the year the government would fulfill its share of obligations and construct an interchange with access roads to this location.

- Everything goes as planned, with no delays - he said and added that in addition to four factories of car parts in Grosnica and three factories next to the plant of Fiat Automobili Srbija, which are in direct connection with Fiat, a big number of companies in Sabac, Nis and other cities would be hired as subcontractors or manufacturers of some smaller parts.

- That is a proof that the automotive industry and the automobile parts industry in Serbia are living their second youth - said Ciric and announced the commencement of full assembly-line production of new automobile models at the plant Fiat Automobili Srbija in March or April 2012.

"Serbia will then become one of the centers of the automotive industry in Europe," Ciric pointed out.

FAS Director General Giovanni de Filippis explained that four component producers, namely Jonson Control, Promo Magnietto, Sigit, and HTL, would have their production halls built on the lot previously belonging to Grosnica barracks to produce parts, plastic components and tires.

Another three car parts producers will locate their production plants in the premises of the old car factory in Kragujevac, the two of which will belong to Fiat's main supplier Magneti Marelli, while the third plant will be the joint property of Magneti Marelli and Jonson Control.

"These three factories will be producing bumpers, control boards, exhaust pipes," he said and expressed the expectation that the production at those plants would commence at the same time as the production of new automobile models in Kragujevac.

Leader of the United Regions of Serbia and former Minister of Economy Mladjan Dinkic said that 80 percent of components for automobiles produced at FAS plant would be manufactured in Serbia.

As he specified, almost all parts, except for engines, will be produced in Serbia.

- That will be a Serbian automobile - said Dinkic.

Jonson Control Vice President Marcio Raveggi said that that company would be producing seats in Kragujevac, at a 30,000-square-meter production hall, and added that the company can employ between 150 and 250 workers in Serbia, depending on the production development.

- I am satisfied with the conditions in Kragujevac - said Raveggi and added that all works must be finished in 10 months in order for the production of parts to commence in May 2012.

FCA Srbija Kragujevac

Johnson Control USA

Nacionalna služba za zapošljavanje Kragujevac

Vlada Republike Srbije

Ujedinjeni regioni Srbije Beograd

Magneti Marelli Corbetta Italia

Grad Kragujevac