February 2 (SeeNews) - The city council of Subotica, in northern Serbia, has decided to grant a unit of German automotive parts maker Continental a land plot for a new factory, Belgrade-based media reported on Tuesday.
The ownership of the 25,000 sq m land plot in the Mali Bajmok industrial area will be transferred to Contitech Fluid Serbia, a locally registered subsidiary of Continental, if the city parliament approves the city council's decision, news agency Tanjug reported.
The state government in Belgrade already gave its stamp of approval to the project in January.
In July, Continental signed a memorandum of understanding with the Serbian government for the construction of a new factory in Subotica, where the German company already operates one plant.
The car parts maker plans to invest 17 million euro ($18.6 million) in the new facility and to employ 500 people, the economy ministry said at the time. The Serbian government promised to provide 3 million euro in subsidies to Continental for the project.
(1 euro = 122.5 Serbian dinars)