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The Government of the Republic of Serbia

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Agreement on expansion of production signed with Leona-teh

Rekovac, 2 February 2011

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic signed today the Agreement on expansion of production with company Leona-teh from Rekovac, which will create 82 jobs.

Author: infobiro.tv

After the signing of the agreement, Dinkic said that Rekovac is one of the municipalities with highest rate of youth emigration and has the highest percentage of unemployment, around 35%, which is why it is great news that a well-known Slovene company is going to invest in it. He explained that the plan is to employ all 82 workers by the end of this year, while the production hall will be completely renovated and state-of-the-art equipment put there.

The arrival of one more textile company after Benetton, Calzedonia, Falke, Pompea, Golden Lady and others show that the development of textile industry in Serbia is getting off the ground.

Leona-teh company is a manufacturer of suits and uniforms and 80% of its shares are owned by Slovene Labod, which has existed for more than 80 years.

The signing of the agreement was attended by Slovene Ambassador to Serbia Franc But, who said that 1,400 Slovene companies are doing business in Serbia in which around 25,000 people are employed.

But assessed that the Serbian government, together with the Ministry of Economy and Regional Development, has good programmes for attracting investment, which is why Serbia is one of the most attractive investment destinations in the region. General Manager of Labod Franc Gajsek said that this company has been doing business with Serbia for over 30 years and has positive experiences, especially in trade, and that it has decided to switch to production with sub-contractors because it believes that it will bring success. The total value of investment of this company is €803,000, and it includes expansion of production capacities through purchase of facilities and new equipment.

Through the programme of the Ministry of Economy and Regional Development on allocation of funds for encouraging investments, administered by the Serbian Investment and Export Promotion Agency (SIEPA), Leona-teh got €7,000 for every new employee.