Production in the expanded capacities of the LEONI factory in Prokuplje, southern Serbia, will start on January 24, the company's representatives announced on Wednesday, during the visit of Serbian Prime Minister Mirko Cvetkovic to southern Serbia.

German company LEONI AG recently built the second production hall as part of its investment plan, thus expanding the existing factory to 13.000 square metres.

Prime Minister Cvetkovic expressed satisfaction that LEONI's investment is being implemented according to the company's plans, and pointed out the significance that such investments bear not only for the local market but also for the entire country.

“This is very important, because it will provide jobs for another 400 people by the end of the year,” Cvetkovic said and reminded that Serbia truly needs its export-oriented production to grow.

Director of LEONI AG said that EUR 6 million have so far been invested in the Prokuplje factory, adding that LEONI intends to invest another EUR 3 million.

LEONI AG is a global supplier of wires, optical fibres, cables and cable systems, and it also provides related services for the automotive sector and further industries.

Cvetkovic opens Novo Tekstil factory in Vranje

On Wednesday, Cvetkovic visited also the southern Serbian city of Vranje, where he opened the new Novo-tekstil factory which will employ 150 people in the first stage of operation and another 350 in the time to come.

After the opening of the factory, Cvetkovic said that this investment is in accordance with the plans which the government included in its new model of development, which entails the increase in employment and production of tradable goods for export.

He welcomed the fact that the entire production line of this factory is intended for export to the European market and congratulated its owner on the realisation of this project and the local self-government on having provided all the necessary support.

A series of such investments will lead to change in structure of the economy and the government will support this, the Prime Minister stated.

Director of the factory Predrag Golubovic pointed out that the opening of this factory is the first real economic venture in this area after a long period of time.

Golubovic said that a company from Teslic in Republika Srpska invested in this factory €1 million in facilities and equipment.

Vranje, as he explained, was not chosen at random, but because of the fact that company Yumco will be the main supplier of fabric to Novo Tekstil.

Novo Tekstil factory specialises in manufacturing of underwear, pajamas and knitwear.

The company plans to produce 250,000 units a month, worth € 500,000. The factory’s production process is rounded up, from the production of yarn, through knitting, chemical processing, dying and sewing.