September 27 (SeeNews) - Serbia's Ikarbus will produce low-floor buses for Netherlands-based VDL Bus Chassis worth 40 million euro ($54 million) starting in January, Belgrade-based media reported.
Under the plan, Ikarbus will produce 250 Citea buses per year, 60% of which will be shipped abroad, news broadcaster b92 (www.b92.net) reported late on Sunday.
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Out of the planned total, 150 buses will be city buses, while 100 will be suburban vehicles, b92 reported.
The 12-metre long Citea buses are made from light materials, the bulk of which can be reccyled, b92 quoted the president of VDL managing board, Vim van der Leg, as saying. The buses will include low-noise engines with low emission levels.
Van der Leg, Serbia’s Economy Minister Mladjan Dinkic and Belgrade Mayor Dragan Djilas signed a memorandum of understanding earlier this month. Under the document, the Balkan country and the Dutch company will form a joint venture, VDL Bus Serbia, in which VDL will invest 10 million euro while the government in Belgrade will contribute 2.5 million euro.
The joint venture will employ 280 people, b92 quoted Van der Leg as saying.
Serbia cancelled in September of last year the sale of Ikarbus to Russia's Avtodetal Service over contractual breaches and after a strike over wage arrears idled the Serbian company in July. Production was re-launched in November.
The government in Belgrade said earlier this year it expects to offer Ikarbus, its largest bus maker, for sale once its production picks up sufficiently to lure a strategic partner.
($=0.741 euro)