February 24 (SeeNews) - Serbian prime minister Aleksandar Vucic said on Friday that he expects German cable and harnessing manufacturer Leoni to open its third factory in Serbia in August.
Leoni plans to invest a total of 22 million euro ($23.3 million) in the construction of the factory, located in Nis, southern Serbia, and will employ 2,200, the Serbian government said in a statement.
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In addition, the German firm plans to open a fourth factory in Serbia that will also be located in the area of Nis, Vucic said during the stone laying ceremony celebrating the beginning of construction of the third plant of Leoni in the country, as quoted in the statement.
With a total of 7,500 employees, Leoni becomes the biggest employer in Serbia's manufacturing sector, Vucic said.
Earlier this month, the managing director of Leoni's Serbian unit, Clemens Sachs, said the company plans to open a third factory in Serbia in 2018, with a workforce of 2,400, in order to take advantage of the good investment climate in the country.
Leoni booked a revenue of 120 million euro from its business in Serbia in 2016. The company operates factories in the municipalities of Prokuplje and Doljevac and currently has a workforce of 5,000 employees in Serbia.
In August, Leoni said it plans to invest at least 22 million euro in expanding its manufacturing operations in the country. The company agreed a 5.5 million euro financial support package with the government and committed to make no staff cuts over a five-year period.
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