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Retail Mr. Markus Ries How Do Buyers Choose Shopping Spots Serbia Investment and May Export Promotion Agency 2008 Highlights of the Month Find out more about the latest investments, trends and developments in Serbia. Read more >>> Meet Us Hear more on real estate during Property Talk about Serbia on May 28, at 10:30 a.m. at the Real Vienna fair. Read more >>> Industry Close Up Retail Retail remains one of the largest and fastest growing sectors in the Serbian economy. Read more >>> Investor Personally Mr. Markus Ries The plans made when we started our operations in Serbia have all been either successfully completed or are being delivered as scheduled. Read more >>> Monthly Reporting How Do Buyers Choose Shopping Spots The two most important factors that determine a specific grocery shopping point are product freshness and quality and product assortment. Read more >>> Arts & Entertainment One day each year lovers of art may enjoy a free visit to numerous museums free of charge from 18.00 to 02.00 hrs in more than 20 cities in Serbia. Read more >>> The Other Home Michele Ognissanti, Country Manager Livolsi & Partners S.p.A. When I come back to Belgrade, even after only two days, something has changed for sure. Read more >>> Hot Spots Krofna Bar “Take off your slippers and come have a doughnut” slogan invites you to enjoy more than 27 types of doughnuts. Read more >>> www.siepa.sr.gov.yu SIEPA 2008 NEWSLETTER Current Issues MAY Serbia Signs SAA with EU production of another model from The company owns exclusive rights B segment will commence, reaching to exploit a spring in Bujanovacka Serbia has signed the Stabilization the annual production of 300,000. spa, 5.2 ha of land and 10,791 square and Association Agreement Fiat’s investment in the first phase meters of production facilities. It with the EU. From the Serbian will amount to €700 million, whilst turned over €10 million in 2007 side, the Agreement was signed the Minister, on behalf of the state, and has 517 employees. by the Deputy Prime Minister is committed to an investment of Bozidar Djelic, while the EU was €100 million over a 4 year period, representedby the Commissioner ten year tax holiday, no fees for: World Class Lingerie and for EU Enlargement Olli Rehn and land, utilities and taxes, together Hosiery from Sombor Foreign Affairs Minister of Slovenia with an establishment of a free Dimitrij Rupel. Agreement will zone in Kragujevac. Memorandum Verona based producer of lingerie enhance trade and political links also envisages joint venture of the and hosiery Calzedonia will invest between Serbia and the EU and pave Italian truck manufacturer Iveco €20m in production units in the way for Serbia’s membership in and Zastava Kamioni. Sombor. The first unit to be built the European Union. for production of women’s lingerie will have 12,000 square meters Meet Us A New Tourist Complex and employ 400 workers. The second one will produce women’s May 15- 18, 2008 Ministry of Economy and Regional hosiery and employ additional 400 Mediterranean Development has announced that workers. The company leased 10 Business Partneria, public invitation for selection of ha in Sombor industrial zone and co-investor for construction of the received financial support from Antalya, Turkey tourist center Babin Zub on Mountain SIEPA amounting to €2,000 per Stara Planina will be announced in employee. May 22 – 25, 2008 May. Potential investors will apply Baltic-Nordic-Western-Balkans for joint construction and sole management of a complex Jabucko A €5 Million Green House Business Forum Ravniste. Applicants must have a Tallinn, Estonia relevant experience in implementing Dutch company Green Terra will a minimum of five investment invest €5 million in the construction May 27-29, 2008 projects worth €150 million in the of a greenhouse in the Municipality last three years and the deadline for of Kikinda. The construction of Real Vienna, stand A 1006 submission of letters of interest will this 8 ha greenhouse is due to start Vienna, Austria be July 15. during summer and employ 120 workers. There is an announcement of even bigger investments from Memorandum Signed Water Company on Sale Dutch Olai Rosen and Bas in an 80 between Fiat and Zastava ha greenhouse that will hire 1,000 Bujanovac based producer of workers. On April 30th, 2008 Memorandum mineral water, soft drinks and on Strategic Cooperation and plastic packaging Heba is also on Investment was signed between sale. Bidders will be offered 70% New Employment in the the Serbian Minister of Economy of state-owned capital and the Shoe Sector and Regional Development, deadline for submission of bids is Mladjan Dinkic, and the Vice June 30. Potential buyers must have Minister of Economy and Regional President of Fiat, Alfredo Altavila. a track record of mineral water Development Mladjan Dinkic visited The Memorandum stipulates the production of at least three years shoe factory Leda in Knjazevac, establishment of a joint company and annual turnover exceeding owned by the Italian company being 70% owned by Fiat and 30% €20 million in 2007. If the bidder Falc East, and announced the by the state. Accordingly, Fiat is is financial investor, it must have employment of 400-500 new workers due to start production of a brand business assets larger than €50 in its renovated units. Leda currently new car in Class A amounting to million, while the single investor employs around 900 workers, turns 200,000 units annually by the end must have income larger than €30 over €15 million annually and of 2009. In the second phase of million. Heba is the third largest exports the entire production to the project to start in 2010, the producer of mineral water in Serbia. Western Europe, US and Japan. www.siepa.sr.gov.yu 2 [email protected] SIEPA 2008 NEWSLETTER Current Issues MAY Moeller Growing in Serbia German concern Moeller will have a new 1,500 square meter unit built in Sremska Mitrovica industrial zone by the end of the year. This unit will be producing components and Investor of the Year Award units for electrical power supply. Moeller has started production The first annual Investor of the Year Award ceremony was organized of elements for electric power by SIEPA under auspices of the Ministry of Economy and Regional De- supply in Sremska Mitrovica velopment. VIP Mobile, Bianca Alena and Telenor are foreign compa- few years ago, in a rented hall, nies which were selected by an expert committee as the companies with only 15 workers. Only two making the greatest contributions to the development of the Serbian years later, it has grown into a economy over the last two years. Two additional special prizes were modern, high-end production awarded to Elrad, for an investment in underdeveloped region, and hall of 3,500 square meters and Hemofarm, for a socially responsible investment. 1,000 workers. Moeller’s project “Investors in Serbia bring not only capital and new jobs to the coun- was supported by SIEPA with try, but also new technologies and experience from foreign markets, €560,000. being indispensable for fast economic development of Serbia,” says Telekom Serbia Announcement Vesna Peric, the Director of SIEPA. “It is equally important for domes- tic companies to benefit from foreign investors presence, either as components suppliers or service providers.” A step forward in the privatization of the Serbian telecom operator “Serbia remains an interesting investment destination for foreign Telekom Srbija was made by an investors despite recent turbulent political development in the coun- announcement of the tender try. Local skills and resources still make Serbia a competitive place for selection of privatization in the region,” adds Ana Firtel, Chairwoman of Foreign Investment adviser for IPO of company’s Council. stocks. Interested bidder must be a respectable international investment bank or a consortium Regional Networking led by such, with relevant Under auspices of ASVILOC project SIEPA is organizing, in coordina- experience of running at least tion with Italian partner, business matching event for Italian, Croatian 2 IPOs worth more than €500 and Serbian companies. This B2B event will take place in Belgrade on million over the past five years 16th and 17th of June. Venue is still to be determined. Companies and at least 1 IPO worth more interested in taking part in this event are welcomed to contact SIEPA than €500 million in the field at [email protected] for further information. of telecommunications. The deadline for applications is 25 days from the day of publishing in the Serbian Official Bulletin – To meet the large demand, audio and video devices - WEG April 29. construction of another shipyard Technology will start the is underway that will increase construction of a new €2 shipbuilding capacity by 30%. Two million factory in Serbia. The Exclusive Ships Built in ships for foreign buyers are in a facility will accompany already Serbia late phase of construction, while operating units in Turkey and ten ships worth about €12 million China and the production is Company Bomex 4M from Novi should be delivered by the end of due to start in late 2008. WEG Becej has delivered the third, €1.12 the year. home appliances will be placed million, ship for the French company on the shelves of Metro Cash CFNR. The company is producing & Carry in 31 countries across exclusively for international WEG Technology Europe, Asia and Africa. The customers and according to the turnover of the company in CEO, Milenko Lepovic, they are fully Serbian company for production 2007 amounted to €30 million. booked until
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