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The Government of the Republic of Serbia

In the service of citizens

Automotive industry to reduce foreign trade deficit in middle term

Belgrade, 26 November 2009

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today that the automotive industry might be the chief support for reduction of the foreign trade deficit in the middle term.

Author: Fonet

Speaking at the conference "Improving the approach to international market for producers and suppliers in the automotive industry in Serbia", Dinkic said that in light of the new investments that are being planned, the Ministry of Economy and Regional Development is sure that that it will generate exports of over €1 billion per year.

He said that over 150,000 people live from the automotive industry and that there are 86 companies in that field right now, of which one third are foreign - mostly from Slovenia, Germany and Italy.

The Deputy Prime Minister said that agreement with the Italian company BredaMenarinibus will be signed in December, for the production of buses in the Ikarbus factory.

Speaking about producers who have already announced that they will begin production in Serbia, Dinkic said that these are German company Drexel Maier, Slovenian Grah Automotive, which has already positioned itself on the Serbian market and Dutch VDL Bus Chassis which will make buses with Novi Sad-based Neobus and export them to the EU market.

Dinkic said that Fiat's investment will be the biggest and further large investment is expected to be released by the end of this year.

Speaking about incentives for those who wish to make production in Serbia, he said that the state is paying between €3,000 and €5,000 per new workplace and financing training through the National Employment Service, which is €900 per trainee.

Participants in the conference agreed that the formation of the car cluster in Serbia in 2005 and its putting into work in 2007 has led to significant results, such as quicker deliveries, higher worker productivity and lower costs.

Director of the Serbian automotive cluster Igor Vijatov said that Serbia's automotive cluster has 39 members, 34 companies and five faculties and scientific institutions.

A cluster means a network of companies and institutions with the common aim of increasing competitiveness and attracting better suppliers to the sector.