Q:
A:
Chinese trucks to be assembled in FAP factory from next year
Belgrade,
23 November 2009
Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic today attended the signing of a memorandum of understanding and cooperation between FAP the Priboj auto factory and China’s top truck manufacturer, Dongfeng Commercial Vehicle Company.
Author:
Fonet
Dinkic explained that the first phase of the commercial and technical cooperation with the Chinese partners will be the assembly of four models of trucks and their placement on the market, adding that the factory must be first modernized and the Serbian government will provide €2 million for this purpose.
He said that in the second phase joint investments will be made so that 51% of the truck parts will be produced inside Serbia, in order for these trucks to be placed on the markets of countries with which Serbia has free trade agreements.
Dinkic said that the first batch of trucks will be assembled next year. He called on other representatives of the Chinese car industry to invest in Serbia.
The memorandum was signed by FAP Priboj Director Mirko Stojovic and Deputy General Manager of Dongfeng Commercial Vehicles Zhou Chiang, as part of the Business Forum of the 8th session of the joint intergovernmental committee for trade and economic cooperation between China and Serbia.
Stojovic said that Dongfeng Commercial Vehilce is one of the top world truck manufacturers, which produces 1.2 million vehicles annually.
Chiang said that it is planned to introduce Chinese technology at FAP through the introduction of the Dongfeng brand, adding that support will also be provided for sales organisation and market research.
He said that the trucks will be constructed to European environmental standard EURO 4 and technical know-how will be made available free of cost to FAP during the first five years.
Dinkic also said that the construction of a bridge across the Danube, which is being planned in partnership with Chinese companies, could start by the middle of 2010. He said that he hopes that the loan agreement with the China Eximbank and the construction agreements with the company China Road will be concluded over the next couple of months.
He said that a €170 million pre-contract was signed, according to which 45% of work on the bridge will be assigned to Serbian construction and building material production companies.
He said that 85% of the funds, nearly €145 million, will come from a loan by the China Eximbank, issued at a fixed annual interest rate of 3%, to be repaid over a period of 15 years.
He said that the construction of the Belgrade – South Adriatic motorway will start in spring, calling on Chinese companies to take part in the project.
Dinkic stressed that the section from Belgrade to Ljig will be constructed in the first phase, at a cost of €300 million, with 30% of the costs being covered by the Serbian government.
He said that it would be in Serbia’s interest if the China Eximbank and the Chinese company take part in the construction of this section.
He said that if Eximbank offers terms and conditions similar to the agreement concerning the Zemun-Borca Bridge then Serbia would like to take them on as partners for that project.
Dinkic said that Serbia and China can cooperate in the area of energy, adding that negotiations with Chinese companies concerning the modernization of the thermo electric plant Kostolac and the building of a new plant have already started.
Head of the Chinese delegation Tchu Hung said that it is necessary to strengthen cooperation between Serbia and China and to improve the business climate for bilateral trade and investment.
She said that it is also necessary to increase the presently small volume of trade between the two countries.
Tchu Hung said that Serbian companies are welcome on the Chinese market and should also participate in fairs and exhibitions in China.
He said that in the second phase joint investments will be made so that 51% of the truck parts will be produced inside Serbia, in order for these trucks to be placed on the markets of countries with which Serbia has free trade agreements.
Dinkic said that the first batch of trucks will be assembled next year. He called on other representatives of the Chinese car industry to invest in Serbia.
The memorandum was signed by FAP Priboj Director Mirko Stojovic and Deputy General Manager of Dongfeng Commercial Vehicles Zhou Chiang, as part of the Business Forum of the 8th session of the joint intergovernmental committee for trade and economic cooperation between China and Serbia.
Stojovic said that Dongfeng Commercial Vehilce is one of the top world truck manufacturers, which produces 1.2 million vehicles annually.
Chiang said that it is planned to introduce Chinese technology at FAP through the introduction of the Dongfeng brand, adding that support will also be provided for sales organisation and market research.
He said that the trucks will be constructed to European environmental standard EURO 4 and technical know-how will be made available free of cost to FAP during the first five years.
Dinkic also said that the construction of a bridge across the Danube, which is being planned in partnership with Chinese companies, could start by the middle of 2010. He said that he hopes that the loan agreement with the China Eximbank and the construction agreements with the company China Road will be concluded over the next couple of months.
He said that a €170 million pre-contract was signed, according to which 45% of work on the bridge will be assigned to Serbian construction and building material production companies.
He said that 85% of the funds, nearly €145 million, will come from a loan by the China Eximbank, issued at a fixed annual interest rate of 3%, to be repaid over a period of 15 years.
He said that the construction of the Belgrade – South Adriatic motorway will start in spring, calling on Chinese companies to take part in the project.
Dinkic stressed that the section from Belgrade to Ljig will be constructed in the first phase, at a cost of €300 million, with 30% of the costs being covered by the Serbian government.
He said that it would be in Serbia’s interest if the China Eximbank and the Chinese company take part in the construction of this section.
He said that if Eximbank offers terms and conditions similar to the agreement concerning the Zemun-Borca Bridge then Serbia would like to take them on as partners for that project.
Dinkic said that Serbia and China can cooperate in the area of energy, adding that negotiations with Chinese companies concerning the modernization of the thermo electric plant Kostolac and the building of a new plant have already started.
Head of the Chinese delegation Tchu Hung said that it is necessary to strengthen cooperation between Serbia and China and to improve the business climate for bilateral trade and investment.
She said that it is also necessary to increase the presently small volume of trade between the two countries.
Tchu Hung said that Serbian companies are welcome on the Chinese market and should also participate in fairs and exhibitions in China.
-
Belgrade, 11 August 2025Support for agricultural projects worth RSD 750 million
-
Belgrade, 21 July 2025Construction of oil pipeline with Hungary to begin early next year
-
Belgrade/Athens, 17 July 2025Serbia continues to align with EU in field of energy
-
Kostolac, 14 July 2025First solar power plant Petka in Kostolac put into trial operation
-
Belgrade, 11 July 2025Potential for improving cooperation with Belarus in many areas
-
Požega, 5 July 2025Section of Pakovraće - Požega highway officially opened
-
Belgrade, 2 July 2025Technical specifications defined for Serbia-Hungary oil pipeline
-
Belgrade, 30 June 2025IMF confirms Serbia successfully implementing all agreed reforms
-
Belgrade, 27 June 2025Double Taxation Avoidance Agreement with Germany signed
-
Kostolac, 25 June 2025Construction of Kostolac wind farm nearing completion