Serbian Deputy Prime Minister Mladjan Dinkic signed Thursday an investment contract with Grammer from Germany, which will result in the company investing another EUR 1.07 million in its Serbian branch and employing an extra 211 people.

Grammer decided to expand its production in Aleksinac, so the Ministry of Economy, through the Serbia Investment and Export Promotion Agency (SIEPA), granted it EUR 4,000 for every new job it plans to open, which adds up to a total of EUR 844,000.

"The Ministry of Economy has two goals - one is to create more jobs for Serbian citizens, and the other is to support export-oriented production," Dinkic said after the contract signing.

He said that Grammer decided to expand production due to rising demand from the European market, and stressed that the company's export is expected to reach EUR 5 million this year, a 25 percent surge from last year.

Dinkic said he expects a Fiat delegation to visit Grammer soon, adding he will suggest to Fiat to use Grammer parts in the production of its new car model.

Dinkic said that the government will endeavor to attract investors to the parts of Serbia struggling with high unemployment.

The company currently employs 515 people, and this is the second time they have applied for investment subsidies, the ministry has announced.