Serbian President Boris Tadic will attend Thursday the signing of a memorandum of understanding between the Republic of Serbia, the city of Sabac (western Serbia), and Danieli & C. Officine Meccaniche SpA, an Italy-based company which designs, manufactures and sells machinery and plants for the steel industry.

The memorandum will be signed by Serbian Minister of Economy and Regional Development Nebojsa Ciric, Danieli Executive Director and Chief Operating Officer - Engineering and Plantmaking Franco Alzetta, and Sabac Mayor Milos Milosavljevic in the presidential building, the president's press service announced.

Minister of Agriculture Dusan Petrovic said Saturday the investment is worth around EUR 500 million, and the annual turnout will likely exceed EUR 1 billion.

The minister added that "Sabac can respond to all demands of such an investment. In the last decade, it has acquired over 600 hectares of land with necessary infrastructure along the Sava river."

Sabac Mayor Milos Milosevic said the investment would greatly help the town which is plagued by unemployment.

Danieli's arrival would also pour money into the local budget, said Milosevic, noting that most revenue comes from income tax.

Milosevic said the factory would employ 1,500 people and indirectly create work for many other companies in Serbia.