Monday, 8th July 2013, Velenje / Slovenia, Zaječar/ Serbia
Gorenje Group and the Republic of Serbia sign a preliminary agreement on joint investment into Gorenje production facilities in Serbia
Gorenje Group and the Government of the Republic of Serbia signed today a preliminary agreement on the intended joint investment into Gorenje manufacturing facilities in Valjevo, Stara Pazova, and Zaječar. Pursuant to the preliminary agreement, the Republic of Serbia will support Gorenje's investment into optimization and improvement of efficiency of manufacturing plants in Valjevo and Stara Pazova, and investment into washing machine and dryer plant in Zaječar where Gorenje is to manufacture appliances developed in cooperation with Panasonic, by a contribution of EUR 15 million. The final agreement on joint investment into all Gorenje manufacturing plants in Serbia will be signed within 120 days from today's signing of the preliminary agreement. Before such agreement is signed, it is to be confirmed by the Government of the Republic of Serbia and by the Gorenje Supervisory Board.
Gorenje Group operates manufacturing plants at three locations in Serbia: water heaters are made in Stara Pazova; cooling appliances are made in Valjevo; in Zaječar, there is a plant for washing machine and dryer assembly, and manufacturing of bathroom equipment. To date, the Group has invested approximately EUR 100 million into the three facilities and the sales network in Serbia.
In Zaječar, Gorenje is planning to expand and modernize the washing machine and dryer plant to accommodate production of washing machines and dryers developed in cooperation with Panasonic with whom Gorenje forged a long-term strategic alliance, as well as some other washing machines and dryers bound for Russia and other markets. The new plant in Zaječar will presumably be launched in 2015. Its products will complete the assortment of the washing machine and dryer plant in Velenje, where Gorenje has been manufacturing since this spring Asko brand washing machines and dryers relocated from Sweden. Annual production output of the Zaječar plant is expected at over 400,000 units, most of which will be exported.
Republic of Serbia will support Gorenje's investment into the plants in Zaječar, Stara Pazova, and Valjevo with a contribution of EUR 15 million.
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