Business News

Gorenje Expanding Production in Serbia

Valjevo, 26 April (STA) - Household appliance maker Gorenje will expand its refrigerator factory in Srbia's Valjevo and employ 400 new people as well as expand the boiler producing plant in Stara Pazova to employ additional 100 workers in line with an agreement signed in Valjevo on Thursday.

The agreement was signed by a representative of Gorenje management, Branko Apat, Serbian Deputy Prime Minister Verica Kalanović, Valjevo Mayor Zoran Jakovljević and the president of the Stara Pazova borough Goran Jović, the Serbian press agency Tanjug reported.

The production facilities in Valjevo will be expanded by some 30,000 sq. metres and 400 new jobs will be created there by 2015. The project is worth some EUR 20m. In line with a memorandum signed in February, Serbia will chip in EUR 5-7m

Kalanović said in her address that the move showed that Gorenje was Serbia's "traditional partner and friend" and represents "our potential for economic development and job creation".

Apat said today's signing of the agreement was a big step both for Gorenje and Vlajevo and Stara Pazova. He noted that this made Serbia Gorenje's second biggest production location after Slovenia.

Apart from the plants in Valjevo and Stara Pazova, Gorenje also has a facility in Zaječar employing about 100 people. Gorenje employs a total of 1,100 people in Serbia and has invested about EUR 70m in the plants there in the last seven years.

The Velenje-based company has told the STA that the expansion of production in Serbia is a part of the company's strategy for the 2012-2015 period. It has chosen Serbia because it encourages foreign investment and because Gorenje already has a network of suppliers there.

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