SIEPA grants €400,000 to stimulate investment in Vranje

SIEPA grants €400,000 to stimulate investment in Vranje

Representatives of the Serbian Investment and Export Promotion Agency (SIEPA) and international company Sanch signed today a one-off agreement to stimulate investment of this company in the amount of €400,000.

This company should build production capacities for production of footwear in Vranje and employ 200 workers in the next two years. The investment should amount to €2 million.

The funds were granted following a decision of the committee for granting one-off funds for stimulation of investment from the National Investment Plan and based on the Decree on terms and stimulation of foreign investments.

The company, under Swiss-Italian co-ownership, currently operates in rented facilities and is procures 40% of raw materials from the domestic market.

The Vranje-based company exports over 40% of its production to the region, including FYR Macedonia, Croatia and Bosnia-Herzegovina. The investment will allow production of 1,500 pairs of footwear a day.

By December 24, 2006, SIEPA received 43 requests for one-off funds and on December 10 a special commission decided to grant funds to ten companies, four of which are foreign and six domestic ones.

A total of €3.43 million for the creation of 1,672 new jobs will be set aside. SIEPA granted €7.2 million to three foreign companies and one domestic company out of 18 applicants for 3,600 jobs in the first cycle, according to a statement.