Magna factory in Aleksinac reduces promised number of workers and gives up EUR 1 million of its subsidy

The facility of the Canadian company Magna, which produces car seat coverings, opened in 2021 in Aleksinac, for which the state had approved an incentive of EUR 4.2 million if they employed at least 570 new workers by the end of 2025. However, the conditions were changed at the end of last year, so Magna now has an obligation to employ a minimum of 370 workers, due to which their subsidy is reduced by a million euros.

After they worked for a while in a rented hall in Aleksinac, in October 2021, the company Magna opened a factory in that place. Before that, the company had opened a big facility in Odzaci, and it had received an incentive from the from the state for the expansion in Aleksinac. The agreement was signed in April 2021, and it points out that at least 570 new workers will be employed by the end of 2025 and that at least EUR 9 million will be invested by the end of 2022.

According to the agreement, before applying for the incentive, this company had 2,030 workers, most of whom in Odzaci, and it obliged not to reduce the number of workers below 2,600, for five years after the investment project.

However, last year, Magna asked for changes to be made to the Agreement, pertaining to a reduction of the obligation of employment and a reduction of the total amount of the incentive.

This was approved in November 2024, when a second annex was signed with the Ministry of Economy.

Magna Seating d.o.o. Odžaci

Magna Aleksinac

reduction of number of workers at Magna Aleksinac