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Talks on Fiat’s strategic investment in Zastava successful
Belgrade,
28 July 2008
State Secretary of Economy and Privatisation at the Ministry of Economy and Regional Development Nebojsa Ciric stated yesterday that talks on the key elements of the contract on joint investment with Italy’s Fiat have been concluded successfully.
In a statement to the Tanjug news agency, Ciric stressed that now that talks on Fiat’s strategic investment in the Serbian car maker Zastava have been concluded successfully, the contract is to be signed later this week, with government’s approval.
The important thing is that agreement on the key elements of the contract has been reached, investments of around €800 million have been agreed upon as well as the factory’s output of 300,000 cars, he specified and said that the ownership will be defined in such a way that the state will own 30%, and Fiat 70% of the factory.
According to him, the contract will envisage major investments in Kragujevac which will become a customs free zone. There will also be huge investments in infrastructure, in the Kragujevac–Batocina road, a section of the railroad to Lapovo, gas and electric energy infrastructure and a ring road around Kragujevac.
Ciric announced that the contract may be debated at the government’s session on Thursday, July 31, and reiterated that it will be signed as soon as Serbian and Italian representatives arrange a meeting.
Serbian President Boris Tadic is expected to attend the signing, as well as Fiat’s President Sergio Marchionne and other top Italian officials, he said.
The Serbian government and Fiat signed a Memorandum of Joint Investment in Zastava from Kragujevac on April 30.
The important thing is that agreement on the key elements of the contract has been reached, investments of around €800 million have been agreed upon as well as the factory’s output of 300,000 cars, he specified and said that the ownership will be defined in such a way that the state will own 30%, and Fiat 70% of the factory.
According to him, the contract will envisage major investments in Kragujevac which will become a customs free zone. There will also be huge investments in infrastructure, in the Kragujevac–Batocina road, a section of the railroad to Lapovo, gas and electric energy infrastructure and a ring road around Kragujevac.
Ciric announced that the contract may be debated at the government’s session on Thursday, July 31, and reiterated that it will be signed as soon as Serbian and Italian representatives arrange a meeting.
Serbian President Boris Tadic is expected to attend the signing, as well as Fiat’s President Sergio Marchionne and other top Italian officials, he said.
The Serbian government and Fiat signed a Memorandum of Joint Investment in Zastava from Kragujevac on April 30.
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