Deputy Prime Minister Verica Kalanovic today stated that the government is ready to endorse Germany’s Leoni in its intention to expand production and open a new car cable factory in Prokuplje.

Following a tour of the factory and a meeting with Leoni management, Kalanovic stressed that every new investor is important to Serbia and that increasing export is of great significance.

She recalled that less than three years ago, Leoni opened a state-of-the-art car cable factory in Prokuplje in which it invested €15 million and hired around 2,000 people.

She noted that opening one more Leoni’s factory in Prokuplje would be of great benefit for this underdeveloped municipality in southern Serbia.

Kalanovic said that she spoke with Leoni’s management about the position of employees and their salaries, which, according to the Rule book adopted by the Serbian government, must be 20% higher than the minimum salary in the country.

This Rule book applies to other investors as well who get incentives from the state for creating new jobs.

The Deputy Prime Minister added that she presented to the factory’s leadership new conditions for state incentives and the provisions of the Rule book which must be respected.

Factory Leoni was opened in August 2009 and the state subsidised every workplace with €5,000.