German "Leoni" to open new unit in Prokuplje on October 19th – possible opening of customs outpost in near future

- German company "Leoni" will put new Prokuplje-based unit for production of cables for automotive industry in operation on October 19th – Petar Prohaska, the Country Manager of that company in Serbia, said today (September 29, 2009).

He said at the meeting with the representatives of the Ministry of Economy and the Customs Administration of Serbia that, after the new factory was put in operation, the company would be transporting goods to Western Europe, which was the reason why good functioning of the customs service was necessary.

The State Secretary within the Ministry of Economy of Serbia, Miodrag Đidić, said that the customs outpost could be opened in Prokuplje within the next year, which would enable easier flow of goods from the Toplica region to foreign countries.

As he explained, in order for that customs outpost to be opened in Prokuplje, just like such outposts were opened in Novi Sad and Čačak, what is required is the support of the local self-government, which should provide infrastructure, as well as the support of entrepreneurs who should allot a land and a building for free.

Last spring, German company "Leoni" bought Prokuplje-based “Fiaz”, the factory for production of brake covers, for 58m RSD, and it promised to invest 15m EUR in production and employ 2,000 workers prior to year 2011, while the Government of Serbia promised to grant 5,000 EUR to “Leoni” for each newly created job.

"Fiaz" was using asbestos in production of brake covers, which caused pollution, and the Ministry of Environment Protection of Serbia has set aside 30m RSD for cleaning the area and production halls.

"Leoni" announced in August that the first 100 employees who had been sent to the training in Slovakia would start working in October.

As it was explained at the meeting, there are many companies, other than “Leoni, that are interested in opening of a customs outpost in Prokuplje, such as large exporters from this region, factory "Frigo" from Kuršumlija, dairy "Lazar" from Blace, factory "Hisar" from Prokuplje, a brick kiln from Mala Plana and other factories.