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Real Estate Three Time Winner of the Largest Greenfield Investment in South East Europe

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Real Estate Three Time Winner of the Largest Greenfield Investment in South East Europe Serbia Investment and January Export Promotion Agency 2007 Current Issues Meet Us Industry Close Up - Real Estate Three Time Winner of the Largest Greenfield Investment in South East Europe Investor Personally Mr. Gili Dekel CEO, Airport City Belgrade Monthly Reporting The Value of Weekly Shopping Arts & Entertainment The Other Home Anthony Burnett Plant Manager, Ball Packaging Hot Spots Magacin www.siepa.sr.gov.yu SIEPA 2007 NEWSLETTER Current Issues JANUARY Serbia on CNN On January 10, the broadcast of Serbia’s promotional video portraying a tour- ist offer of Serbia on CNN has marked the launch of a four month advertising campaign. During that period, two 40- Non-Refundable Funds Given materials for finishing works in second video clips will be broadcasted to Investors construction and decorative mortars. 507 times in an attempt to make broad Also, a subsidy of €310,000 was audience aware of Serbia and its natu- SIEPA has awarded Subotica-based granted to a Slovenian company ral beauties. This campaign is financed Eminent company with €480,000 Gorenje Tiki for the construction of by the National Investment Plan. from the National Investment Plan for a boiler and radiator factory in Stara a €2.1 million project. Over the next Pazova worth €4 million. Gorenje Tiki three years the company will expand will employ 55 workers and relocate The Comeback of a Furniture both premises and equipment of the entire production of radiator and Producer SIMPO the apparel company Plantex from boilers from Slovenia to this factory. Plandiste, which Eminent has recently Some 65% of the total production will Vranje-based furniture producer Simpo bought and plans to employ 240 be exported to the European Union, inked a €4 million agreement on build- workers. Eminent announced its Russia and other states. ing a factory for manufacturing children intention to continue exporting SIEPA granted €400,000 to Sanch beds. When in full operation, the factory around 30% of its Plandiste branch company from Vranje which is to will be producing some 100,000 beds output into the countries of the region, invest €2 million into the construction annually and employing 150 people, including Russia. Finally, the company of a new plant for the production of while the equipment will be financed aspires to reach a production of footwear and a warehouse in Vranje by Ikea. In addition, Simpo is to build a 100,000 clothing items a month. where this factory is to employ 200 plant for the production of massive fur- Italian company Calzificio Real people. The company is a result of a niture worth €2 million and to increase is another beneficiary of the same joint venture between Swiss company production of furniture by 17%. program SIEPA is implementing. Italian Meise Holding with 70% of share capital Furthermore, Simpo has signed company will receive €800,000 for the and Italian Sant Luis. Sanch exports a €20 million agreement on export construction of a nylon pantyhose and more than 40% of its production to of furniture with Roche-Bobois. The lingerie factory in Backa Palanka, in countries in the region: Macedonia, agreement with the owner of the retail which €10 million will be invested. The Croatia and Bosnia-Herzegovina. chain engaged in sales of exclusive fur- new factory will provide employment Serbian company Foodland has niture was reached at the world largest for 400 people. The construction of signed a contract to receive €200,000 furniture exhibition in Cologne and it the factory should start in May 2007 for a €2 million investment over the will mark the return of Simpo’s furni- and will be completed within 3 years. next three years into the new factory ture on the European market. Simpo The investment program envisages for production of traditional Serbian was the only company from Serbia that two thirds of production inputs foodstuff. The company exports 95% exhibiting at the Cologne fair and has will be sourced locally, while more of its production to markets of EU, US presented 30 new models of furniture than 70% of the production should and Russia. Hundred new jobs will specially designed for German, French, be exported to the EU and Russia. be crated in Brus, where the factory Italian and Scandinavian markets. Company Henkel is to build a €5.2 will be erected. million building adhesives factory €2.6 million investment into in Indjija. The factory will employ 60 recycling facility and 112 new jobs New Investment workers and that has made Henkel over the next three years have entitled in the Banking Sector eligible for receiving financial support Batocina-based company Brzan Plast from SIEPA in the amount of €150,000. to a €280,000 of financial assistance Belgium’s KBC Group and sharehold- The construction of the factory had provided by SIEPA. Brzan Plast was ers of bank A Banka from Belgrade have begun in October 2006 and will be established in 1993 and is engaged reached an agreement on a takeover of operative in the first half of 2007. in the recycling of plastic waste between 70% and 100% of shares of this The factory will be specialized in a and production of PE foil which is Serbian bank. After the agreement is con- production of glue, with an annual almost entirely exported to foreign firmed by the National Bank of Serbia, capacity of 100,000 tons, and powder markets (89%). the third largest financial conglomerate in Belgium can proceed with transaction, which is due in the first quarter of 2007. www.siepa.sr.gov.yu 2 [email protected] SIEPA 2007 NEWSLETTER Current Issues JANUARY Serbia Becoming Software Minister Bojan Dimitrijevic have laid a Center of the Region foundation stone of a €1.3 million ski re- sort at Mt. Rudnik. The ski centre will be The Vice President of the US software launched in the next winter season and company Red Hat Werner Knoblich an- the funds for the first phase of the con- nounced the opening of a representative struction will be provided from the Na- Open Call for Investors office in Belgrade and a regional sup- tional Investment Plan. As being in the port centre in Vrsac. The centre in Vrsac vicinity of Belgrade, this ski resort will SIEPA announced the third appli- will be servicing users in ten countries become a tourist centre of Serbia’s capi- cation round for receiving finan- in the region. Red Hat is a leader in the tal and the surrounding area. To become cial assistance with the application development, distribution and support one, additional investments in road and deadline being March 16, 2007. In of software with an open code, which is hotel infrastructure will be made and addition to the existing benefits based on Linux operative system. that was announced by the ministers. comprising highly qualified labor force at competitive prices, the pos- sibility of duty-free exports to all Car Parts NBS to Retain a Tight the markets in South East Europe from a Brand New Factory Monetary Policy and Russia, strategic geographic position and the lowest corporate Slovenian company Cimos has The Monetary Committee of the Na- profit tax in Europe at 10%, Ser- opened a spare car-part production tional Bank of Serbia has reduced the bia is proud to offer financial as- factory in Secanj in which the com- referential interest rate from 14% to 13% sistance for future investments in pany invested more than €16m. The a year. That is the fifth reduction since the country. The non-refundable factory will produce spare parts for September 2006 when it was intro- funds will be assigned according motor vehicle pumps and is to em- duced as the key monetary instrument. to specified criteria for invest- ploy around 100 workers. The Chair- NBS Governor Radovan Jelasic said ment projects in all areas, except man of the Board of Directors Mr. that the Monetary Committee has as- for trade, tourism, hospitality and Franc Krasovec has announced new sessed a room for certain monetary pol- agriculture. Eligible companies are investments of Cimos in Secanj mu- icy relaxation, since the total inflation in those involved in manufacturing nicipality in the value of €19 million. the fourth quarter of last year was lower activities, internationally market- Slovenian company bought foundry than planned. According to the gover- able services sector and research Livnica Kikinda in 2004 for €100 mil- nor, the announced rise in electric ener- and development sector. For more lion and Forging factory Jasa Tomic gy and household heating prices should information please visit our web- for RSD 112 million at the end of De- not exert a negative influence on the re- site at: www.siepa.sr.gov.yu. cember 2005. alization of the NBS goal of keeping the basic inflation in 2007 between 4% and 8%. Inflation in 2006 was 6.6%. New Employment Booming Real Estate through Effective Cooperation Meet Us MPC Holding will invest €500 million Zastava Elektro company based in Raca into construction of office and resi- Kragujevacka and the multinational February 4 - 6, 2007 dential buildings in Belgrade and Nis company Delphi have signed an agree- over the next three years. The plan for ment on business and technical coop- CPD Düsseldorf, Germany 2007 is to build Usce shopping center, eration. According to the agreement, the second tower of the Belgrade twin Serbian company will produce wire har- February 8 - 10, 2007 towers, office center in Nis, Immo- ness for the top car makers in Europe. In FruitLogistica, Berlin, centar in Belgrade’s suburb Cerak and order to do so, the company will employ Germany several residential complexes in New additional 700 workers by the end of Belgrade.
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