Tuesday, 14th February 2012, Velenje / Slovenia, Valjevo / Serbia

Gorenje and Serbian government sign a Memorandum of Understanding

Gorenje and Serbian government sign a Memorandum of Understanding

Gorenje Management Board member Mr. Branko Apat, and vice president of the government of the Republic of Serbia Mrs. Verica Kalanović, signed in Valjevo today a Memorandum of Understanding that lays down the starting points for cooperation, and obligations to be assumed by the Republic of Serbia and Gorenje in case of a decision to expand the Valjevo refrigerator freezer manufacturing plant, as currently deliberated by Gorenje.

The Memorandum is not a legally binding document and the decision to proceed with the investment project is yet to be confirmed by the corporate bodies of Gorenje and relevant bodies of the Republic of Serbia. Subject to final confirmation of the project by both signatories, legally binding agreements would ensue. Pursuant to the starting points specified in the Memorandum, Serbia would support Gorenje's new investment in Valjevo by grants and subsidies in the total amount of EUR 5 to 7 million; Gorenje would, in turn, create 400 new jobs at the extended Valjevo plant by the end of 2015. The value of the investment of expanding the manufacturing capacity in Valjevo is estimated at approximately EUR 20 million.
 
Optimization of manufacturing facilities, which also includes the possibility of expanding the Valjevo plant by adding production floor space on the land that Gorenje already holds on lease, is a part of the set of measures planned by Gorenje in order to reach the goals specified in the Strategic Plan for the period 2012-2015.
 
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