Serbia invests EUR 15 million in Gorenje - Slovenian company to hire another 700 workers by 2017

The Serbian government and the Gorenje company have concluded a preliminary agreement that provides for the company's new investment in Serbia through a joint investment in the expansion of production of household appliances in Serbia, in factories in Zajecar, Valjevo, and Stara Pazova. This will make it possible to hire 700 new workers over the next three years as well as to boost both production and exports, the Ministry of Finance and Economy said in a release.

As it was announced, the Serbian government is going to provide EUR 15 million for this purpose by 31 January 2015 and, thus, become a minority owner of all Gorenje factories in Serbia. This money will be primarily spent on the expansion and modernization of the washing machine factory in Zajecar, in which EUR 22 million will be invested over the next two years.

The joint investment is expected to result in the following: jobs for 700 new workers within the next three years at all Gorenje factories in Serbia (Zajecar, Valjevo, and Stara Pazova), production boost in all factories from EUR 108 million in 2012 to EUR 230 million in 2016, and export boost from EUR 95 million in 2012 to EUR 210 million in 2016.

Based on aforementioned preliminary agreement, Gorenje will be purchasing minimum 40 percent of components and raw materials from local companies, which will additionally increase the number of indirect jobs. Over the next two years EUR 22 million will be invested in new facilities, equipment and information system in a bid to modernize the washing machine factory in Zajecar. This factory will hire 200 new workers and produce washing and drying machines under the Panasonic brand in addition to those produced under the Gorenje brand. The company plans to make 450,000 washing machines a year in Zajecar and export most of the production.

Gorenje has so far invested EUR 100 million in Serbia, and it currently employs about 1,300 workers, whereas the number of indirect jobs is constantly growing with the expansion of the network of local suppliers. Gorenje exports over 90 percent of its production in Serbia to Russia, Germany, Ukraine, Croatia, Slovenia, and other countries, the release reads. This company operates in 70 countries worldwide and has over 10,700 employees.