Business News

Gorenje Plans Fresh Investment in Serbia

Velenje, 24 January (STA) - Household appliance maker Gorenje plans a EUR 2.9m investment in Serbia to assemble washing machines and driers bound for Serbia, Russia and other markets in the region in a bid to take advantage of Serbia's free trade agreements. The contract with the Serbian Economy and Regional Development Ministry is to be signed this month.

Gorenje will produce the appliances in its main location in Velenje but assembly will be carried out in Zajecar, eastern Serbia, in line with strategic guidelines that call for relocation of low-value production to cheaper locations and the preservation of high-value production in Slovenia, the company said on Monday.

The company also plans to relocate production of plastic washbasins to Serbia, as it says is no longer viable at the current location in Sostanj, where the workforce will be cut from 132 to 50. Gorenje says it will try to find the redundant workers jobs in the Gorenje group.

Gorenje already has two production sites in Serbia: a refrigeration appliance plant in Valjevo, and a water heater plant in Stara Pazova.

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