Chinese investor planning EUR 15 million investment in Ljubovija – Production should start in a year

A Chinese investor planning to open a production facility in Ljubovija wants to complete the necessary activities within a few months to a maximum of a year, so that production can start as soon as possible. The potential investment is estimated at around EUR 15 million, while the new facility could employ approximately 200 workers.

The implementation of the project was discussed at a second meeting at the Ministry of Economy, attended by representatives of the Municipality of Ljubovija, the Ministry of Economy, the Development Agency of Serbia (DAS) and the Chinese investor, led by the company’s director.

The “Sanducara” area in Ljubovija is being considered as a potential location for the new facility. The Chinese company operates in the wood processing sector, and already has two production facilities in Serbia, with a total of around 190 employees.

The meeting specified the conditions for the implementation of the investment, including the procedure for granting state incentives, deadlines and investor obligations.

As stated, the standard deadline for the implementation of an investment project is up to three years, during which the investor should realize the contracted investment and reach the planned number of employees. After the completion of the project, there is also an obligation to guarantee investment – at least five years for large companies, or three years for small and medium-sized enterprises.

Representatives of DAS explained the procedure for using state incentives, which are awarded in the form of grants, with appropriate security instruments.

However, the Chinese investor plans to implement it much faster than the maximum deadline stipulated by the procedures. The company’s director says that the goal is to complete all necessary activities in a few months, or at the latest in a year.

One of the reasons for accelerating the investment is the high demand for the company’s products on the European Union market, which is why the investor wants to put the new production capacities into operation as soon as possible.

Talks about opening a plant in Ljubovija have been ongoing for several months, and it was previously announced that the implementation of the project could bring an investment of around EUR 15 million and the creation of approximately 200 new jobs.

Opština Ljubovija

Ministarstvo privrede Republike Srbije

Razvojna agencija Srbije

Municipality of Ljubovija

Ministry of Economy

Development Agency of Serbia

DAS