May 29 (SeeNews) - Serbia's government said German car parts maker Continental plans to open a research and development (R&D) centre in Novi Sad, in northern Serbia, on July 1.
The company plans to invest more than 1 million euro ($1.1 million) in the project and to hire 100 engineers by the end of 2017, plus another 400 in the next two years, the government said in a statement on Sunday.
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Continental wanted to open a R&D centre in Serbia three years ago, but then the management of the German car parts maker considered the economic situation in the country was not good enough, prime minister Aleksandar Vucic said in an audio file posted on the website of the Serbian government.
Today, the economic situation is different, Serbia has total financial stability, and is gaining the confidence of investors, Vucic said.
The R&D centre in Novi Sad will have two units - Body & Security, and Commercial Vehicles & Aftermarket. The centre will operate as part of the interiors unit of Continental.
In March, Continental launched a second plant in Serbia's northern town of Subotica, which employs over 500 workers. Continental, which already operates one plant in Subotica, invested 14.5 million euro in the new factory, while the government provided 3 million euro in subsidies.
The new plant has increased Continental's capacity in Serbia to over 20,000 sq m in workable space alone. The number of its employees will increase to 1,500 in the next few years.
($ = 0.8945 euro)