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The Government of the Republic of Serbia

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New plant of Knauf Insulation factory opened in Surdulica

Surdulica, 7 September 2007

Serbian Minister of Economy and Regional Development Mladjan Dinkic and owner of the US manufacturer of residential and commercial insulation Knauf Insulation Nikolaus Knauf opened today in Surdulica a new plant which will increase production and enable the creation of new workplaces.

Dinkic said that this is one of the best examples of privatisation in Serbia, because the buyer invested six times more funds in the factory than he was obliged under the contract.

Knauf Insulation is the new name of the factory Vunizol, which was privatised in May 2005.

This factory is one of the leading manufacturers of insulation in the world and it employs 122 workers in Serbia.

Until now, Knauf in Surdulica supplied the Serbian market with 17,000 tons of insulation per year, but as of today it will supply it with another 45,000 tons, which totals 62,000 tons per year. That is 12 times more than the factory used to produce before privatisation.

Apart from Minister Dinkic, State Secretary for Regional Development Verica Kalanovic is also on the visit to Surdulica and Leskovac, together with State Secretary for Tourism Goran Petkovic and Director of the Agency for Development of Small and Medium-Sized Enterprises Dejan Jovanovic.

RSD 8 million are set aside in the budget of the Ministry of Economy and Regional Development for development of the Vlasina region. This project will be supported with RSD 22 million from the National Investment Plan (NIP) in 2008.

At the Vlasina hydroelectric power plant club in Surdulica, Dinkic and Petkovic presented the master plan for Vlasina, which determines the rules of using, regulating and organising this area. It envisages three main development zones with 13 tourism sub-zones and two special localities outside the habitation.

A sum of RSD 8 million is envisaged for the development of Vlasina in the budget of the Serbian Ministry of Economy and Regional Development. It is planned that this project should be supported with RSD 22 million in 2008 from NIP funds.

Dinkic, Petkovic, Kalanovic and Jovanovic attended this evening a panel discussion about start-up loans in Leskovac. The loans are intended for young entrepreneurs and legal entities - beginners in various crafts, production and services in Serbia.