Velenje, 10 October (STA) - Household appliance maker Gorenje has launched the production of plastic washbasins and an assembly line for washing machines in what is the company's third plant in Serbia. The plant currently employs 39 people and the number of workers is to increase to 88 by the end of the year.
The plant in Zajecar (eastern Serbia) is expected to produce some 7,000 basins and assemble 7,000 washing machines, bound for Serbia, Russia and other markets in the region, the Velenje-based company wrote in a press release on Monday.
The components will still be produced in Velenje, but assembling the appliances in Serbia will allow Gorenje to use the advantages of the country's customs agreements with Russia and other countries in the region.
The company thus expects the new plant to boost its sales revenues on Eastern European markets and increase production in Velenje.
Gorenje opened the plant based on an agreement signed in January with the Serbian government, which is to provide some EUR 3m in subsidies for the plant, which is expected to employ 300 workers by 2014.
The Velenje-based company already has two production sites in Serbia - a refrigeration appliance plant in Valjevo, and a water heater plant in Stara Pazova.