State assistance to Chinese company building factory in Nis. 1,000 jobs expected to be created

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State assistance of 16.4 million euros to Chinese company Xingyu Automotive Lighting Systems Ltd. Belgrade - Savski Venac for an investment of at least 60 million to build a factory in Nis - is in compliance with regulations, the Commission for State Aid Control has announced.

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The Chinese investor pledged to invest 7.5 million euros for land by the end of 2023, 32.7 million for construction of buildings and 19.6 million for new equipment, while the value of wage costs for new workers - related to the two-year period investment after reaching full employment - will amount to at least 13.8 million euros.

This greenfield investment in the territory of Nis will receive state aid outside of market conditions, since it will employ at least 1,000 new full-time workers within five years of completion of the investment project.

The investor is owned by Changzhou Xingyu Automotiv Lighting System Co. Ltd. from China, which is an automotive lighting manufacturer with 5,731 workers and an estimated 650 million euros in revenues in 2018, said the commission and added that the company would base new production lines in Nis on an area of 16.55 hectares.

State aid for this investment will be paid in four tranches.

(Telegraf Biznis/Tanjug)