Factory of automobile cables "Leoni" opened in Prokuplje

Factory of automobile cables "Leoni", in which total of 10m EUR should be invested, was ceremoniously opened today (December 2nd, 2009) in Prokuplje.

The factory was opened by the Deputy Prime Minister of Serbia, Mlađan Dinkić, and the President of the Administrative Board of "Leoni", Uve Laman, in the presence of the President of Serbia, Boris Tadić.

German company "Leoni" earlier bought former Prokuplje-based factory for production of covers for automobile brakes "Fiaz" in bankruptcy for 58m RSD.

The plan is that 550 people get jobs in the factory prior to March 2010. At the moment, total of 150 automobile cable kits are being assembled in this production unit every day.

Production of automobile cables started about one month ago, after six months of preparations and realization of 3m EUR worth of investments.

As the people from that factory told "Beta" agency earlier, the plan is that the production be tripled in March 2010.

The process of employment of new workers will be resumed, so that "Leoni" in Prokuplje will have 1,300 new workers in 2012.

"Leoni" receives 5,000 EUR for every newly employed worker as a subvention from the Government of Serbia.

The aid for commencement of production in Prokuplje has been provided by the Ministry of Economy and Regional Development, the Ministry of Environment Protection and Spatial Planning and the Investment and Export Promotion Agency of Serbia (SIEPA).

The municipality of Prokuplje has provided building and other permits for investors and freed them from paying all taxes within the next 10 years.