Denmark's Grundfos to put online Serbian factory in May 2013 - municipality

The construction of the building has been completed and the production lines and equipment are being delivered, Grundfos CEO Jim Toft Nielsen told the municipality on Tuesday.

The plant will produce small pumps for heating systems and water circulation while in the future the company plans to make wastewater pumps, Nielsen said adding that the output will mostly be exported to European Union countries and to Russia.

Grundfos received 6.0 million euro in state subsidies for the new plant from the Serbian government where it plans to employ 350 by 2014.

The expansion in Serbia has been prompted by the strong growth of the company in central and eastern Europe, Grundfos said earlier. The Danish pump producer revealed plans in May 2012 to relocate parts of its production from the Bjerringbro facility in Denmark to Serbia in the 2012-2014 period as some of its models cannot be sold in the EU after 2012 due to tighter environmental regulations.

The company opened its first Serbian plant in Nova Pazova, in northern Serbia, in July 2011.

Denmark-based Grundfos (www.grundfos.com) produces pumps for buildings, industrial applications, irrigation, water-supply and water-treatment systems.

($=0.7756 euro)