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The Government of the Republic of Serbia

In the service of citizens

Production of modern trucks to be launched in Priboj

Priboj, 30 May 2014

Minister of Economy Dusan Vujovic and CEO of the Finnish company SISU Auto Timo Korhonen signed today in Priboj the Memorandum of understanding that envisages taking over part of property of FAP Corporation Priboj and launching production of new trucks and truck parts.

Author: Tanjug

The Memorandum was signed in the presence of Prime Minister Aleksandar Vucic and Finnish Ambassador Pekka Orpana.

The Serbian government will support this project, and in the first year 200 workers will be employed, while in the years to come this number should grow to 600.

SISU Auto will bring knowledge and new technologies, but also its existing markets.

SISU Auto will establish in Serbia a company for the production, sale and development of heavy commercial vehicles and components, and in order to implement the investment project, the investor intends to buy a piece of property and equipment of FAP.

The plan of the Finnish company is to develop in Priboj a new capacity for the production of vehicles, which will include modernisation of products and production management systems.

Aleksandar Vucic, left, and Timo Korhonen

Author: Tanjug

In this work, SISU Auto plans to rely on the expertise and motivation of the workers of FAP, as well as on its marketing, managerial and technological knowledge.

The final goal is the creation of a modern, efficient and competitive production plant and the creation of a sustainable industrial employment in Priboj.

The property which will be the subject of transaction will be offered for sale through a public and transparent procedure in line with the laws of the Republic of Serbia.

SISU Auto is a Finnish renowned manufacturer of trucks, which represents a leader on the market of heavy-duty trucks under the brand name SISU, adjusted to special needs for work in inaccessible terrains and severe weather conditions.

As such, they represent the pinnacle of technology in the truck industry, and in addition to civil assortment they also produce a variety of military vehicles.

Special trucks of SISU Auto are based on the technology and engines of the Mercedes-Benz latest generation, so with this agreement this technology will also arrive in Priboj.

SISU Auto is not just a buyer, but it has the status of Mercedes’ partner because its engineers develop special technological solutions for Mercedes.

After many years of problems in the work of FAP, the Serbian government set up the Working group for finding a sustainable solution in November last year.

According to all analyses, the European market is oversaturated and truck manufacturers have excess manufacturing capacity.

The only ones that can survive on the market are the leading companies that produce far greater series than what FAP was producing at the peak of its operations.

Therefore, the Working group concluded that the only chance for the survival of truck production in Priboj is in the highly specialised trucks made in small series, which are more expensive trucks with a special chassis and non-standard superstructure.

The most important is that with this contract, Priboj will get stable economic prospects which do not depend on state aid.

With this Serbia will increase its presence on the world map of the automotive industry as the country where FIAT cars are produced, Ikarbus-Mercedes buses and SISU heavy trucks.

The cooperation of Chinese JAK and Zastava trucks in the production of light commercial vehicles has also been announced, reads a statement by the Serbian government.