Local construction company Herc Gradnja has been hired to build the factory, which will spread over 4.500 square metres and employ some 150 workers, news portal Trebinjelive.info reported on Thursday.
The construction works will be launched in January and should be completed in 120 days.
Swisslion Industrija Alata Trebinje is majority-owned by Serbian diversified group Swisslion-Takovo.
Trebinje is located in the Serb Republic, one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Federation.