Minister of Economy and Regional Development Mladjan Dinkic, President of Magneti Marelli S.p.A. Eugenio Razelli and Mayor of Kragujevac Veroljub Stevanovic signed an agreement in Belgrade on May 25, 2010. The agreement anticipates construction of a new Magneti Marelli factory in Kragujevac and employment of approximately 400 workers.
It’s been said that factory construction is to begin in next few months, and it should be completed by the summer 2011, when the manufacturing of key components for launching of the test series of the new Fiat model is to begin. It is planned that Magneti Marelli, which is the world leader in components and automotive parts manufacturing as well as one of the main suppliers of the Fiat S.p.A., will invest in Serbia around €60 m and produce parts for 200.000 vehicles per year.
The Republic of Serbia will provide assets in amount of €10 m, along with the Serbian National Employment Service subventions for the trainings of new workers in amount of €800 per newly employed. “The signing of the agreement is just the beginning of arrival component manufacturers to Kragujevac. Next year for sure we are going to have a new car model made in Kragujevac, for the cooperation with the Fiat has been intensified making Serbia the hub of the automotive industry in South Eastern Europe. Today we’ve been told that one billion euros worth components for Fiat Punto are going to be produced until 2013, while the overall export of Fiat cars from Serbia is to reach €1.5 m. That gives us the opportunity to change the structure of the Serbian economy from import to export orientated. Therefore, the stimulus provided by the Government is going to pay off well,” emphasized Dinkic.
In his address Eugenio Razelli thanked to the Serbian Government on support given in the process of this grand project realization. “There is strong bond between Italy and Serbia that lasts for decades. The work quality that existed in Kragujevac and the pride of the people who worked for Fiat in those days, are kept even today and that is fundamental for attracting new investments in Kragujevac as well as Serbia,” he noted.
”The signing of this agreement is the outcome of the city’s development policy started six years ago. Accordingly, the City will provide the infrastructural equipment of the land for new Magneti Marelli factory along with the local tax advantages. This is the great moment for us and I do expect Kragujevac voted for one of the cities of the future to move up from third place. We are ready to respond to demands of new investors, and as far as Magneti Marelli concerns, within forty days from the moment they enter into the procedure, they will get the land tenure agreement,” said Mayor Stevanovic.
The Executive Vice President of the Fiat Alfredo Altavilla commented that Serbia is exceptional place for investment, and that arrival of the Fiat came as no surprise but as result of the vision and strategic planning. “We came here in order to grow and develop the company, and the fact that Fiat Punto Classic is the best selling car in Serbia proves that. Serbia is the key for Fiat development strategy, both in production and distribution sector,” he added.
The signing was held within the First International Investment Conference dedicated to the Serbian automotive industry held in Belgrade with the participation of more than 150 companies from 20 countries.