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The Government of the Republic of Serbia

In the service of citizens

Grah Automotive in Batocina to help increase employment, exports

Batocina, 27 August 2010

Prime Minister Mirko Cvetkovic said today that the investment by Grah Automotive in Batocina contributes to achieving two main Serbian government objectives, namely creating new jobs and increasing exports, adding that the government therefore decided to provide financial support to this company.

VIDEO: Cvetkovic, Dinkic touring Grah Automotive in Batocina

After touring the works on the new production area and after talks with the leadership of the company that produces car parts, Cvetkovic observed that this is an example of a successful greenfield investment with profitable production, regularly paid salaries and taxes, that is employing new people and is considering additional investment.

Most of the company’s products are exported, he stated noting that the development and construction of new capacity is the basis for new employment.

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic presented the contracts of employment for the first 14 new employees in this company.

Hiring new employees in the company should contribute to ending the trend of young people leaving the Sumadija region.

He stressed that the arrival of Fiat to Kragujevac, Yura Corporation to Raca and Grah Automotive to Batocina strengthens the Serbian car industry with Sumadija becoming its centre.

Dinkic remarked that Grah Automotive has already pre-sold its production up to 2014 and announced that the state will provide incentives through the employment of 400 new workers.

General Manager of the company Robert Grah confirmed that in addition to workers who were presented the contracts today, Grah Automotive will employ 64 new staff by the end of the year.

Grah Automotive in Batocina currently employs 170 workers. Due to increased volume of work and better positioning in the field of suppliers of car parts, the company decided to expand its capacity.

The construction of a new production plant spanning 4,500 square metres, the total value of which is €11.2 million, is underway. The completion of works on building the new facility is scheduled for early October.

Through an incentive programme for direct investment, implemented by the Serbian Investment and Export Promotion Agency (SIEPA), Grah Automotive received €1.6 million, ie €4,000 for each newly opened position.

At the beginning of the visit to Batocina, Cvetkovic and Dinkic talked with Batocina mayor Radisa Milosevic and members of the leadership of the municipality.