Velenje, Slovenia - Slovenian appliance maker Gorenje has signed a memorandum of understanding with the Serbian government on plans to expand its Valjevo refrigerator freezer manufacturing plant.
Gorenje board member Branko Apat, and the vice president of Serbia, Verica Kalanovic, signed the non-binding MOU 14 Feb in Valjevo. The MOU lays down the starting points for cooperation.
The decision to proceed with the investment is still to be confirmed by the corporate bodies of Gorenje and relevant bodies of the Republic of Serbia.
Serbia may offer Gorenje grants and subsidies of Euro 5-7 million; Gorenje would, in turn, create 400 new jobs at the extended Valjevo plant by the end of 2015. The capacity expansion at Valjevo is estimated to cost about Euro 20 million.
Optimisation of the facilities potentially includes adding floor space on land that Gorenje already leases, and is a part of Gorenje's measures to reach the goals in its strategic plan for 2012-2015.
PIC: Gorenje board member Branko Apat (l) and Sebia's vice president Verica Kalanovic signing the contract (photo: Gorenje)