Finns to get EUR 7.5 million for 1,500 new jobs - PKC expects incentives for construction of automotive cable factory in Smederevo

Finns want money. Based on a Memorandum of Understanding for the opening of factory for producing cables for commercial vehicles that was signed between Smederevo and Finland's PKC, this company is to receive EUR 7.5 million in incentives for the creation of 1,500 new jobs. An agreement on this deal should be signed within the next two weeks, but it has not been announced yet whether Serbia has money to pay incentives to the Finns.

According to the MoU that Deputy Prime Minister Aleksandar Vucic signed on behalf of the Serbian government, PKC is promised an incentive of EUR 5,000 for every new job created over the period of three years from the agreement signing date. The plan is to pay these incentives in three tranches. An agreement on the allotment of state aid of EUR 7.5 milllion should be signed by end-January.

While waiting for state aid to arrive, Smederevo has made a decision to take out a loan of RSD 1 billion to finance the construction of a 20,000 sqm production facility with complete infrastructure.