Serbian Government Invests in Gorenje Plant Upgrades
Jul 12, 2013
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Gorenje Group and the Republic of Serbia signed a preliminary agreement to jointly invest in Gorenje manufacturing facilities in Valjevo, Stara Pazova, and Zaječar.
The Republic of Serbia will support Gorenje's investment in improvements in manufacturing plants in Valjevo and Stara Pazova, as well as investment in a washing machine and dryer plant in Zaječar, where Gorenje plans to manufacture appliances developed in cooperation with Panasonic.
The Republic of Serbia contribution will be EUR 15 million.
A final agreement on the joint investment will be signed within 120 days, following confirmation by the Government of the Republic of Serbia and by the Gorenje supervisory board.
Gorenje currently has three plants in Serbia:
* water heaters are produced in Stara Pazova
* cooling appliances are produced in Valjevo
* washing machines and dryers are assembled, and bathroom equipment is manufactured, in Zaječar
The group said it has invested about EUR 100 million in the three plants and in the sales network in Serbia.
The new Zaječar manufacturing facilities will produce laundry appliances co-developed with new alliance partner Panasonic, as well as for some washing machines and dryers for Russian and other markets. The new Zaječar plant is tentatively expected to begin production in 2015. The plant is expected to have an annual production output of more than 400,000 units, most slated to be exported from Serbia.
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