Decision on commencement of construction of Gorenje's factory in Valjevo in April

Valjevo Mayor Zoran Jakovljevic stated Monday that a decision on when the Slovenian company Gorenje would start the construction of a new factory in that city was going to be made in late April.

He said that we would then finally know whether and under which conditions Gorenje would build another cooling equipment factory in Valjevo.

Jakovljevic was staying in Slovenia last week, where he talked with the management of Gorenje in Valenje about the company's business plans for Valjevo.

As he stressed, the local self-government will quickly issue a location permit and do all other necessary things to enable the commencement of construction as soon as Gorenje decides to build a new factory.

A Memorandum of Understanding for the construction of a freezer and refrigerator factory in Valjevo, which should cost EUR 20 million and employ 400 workers, was signed in mid-February between Serbian Deputy Prime Minister Verica Kalanovic and Branko Apat, a member of the management of Gorenje.

Ms. Kalanovic announced on that occasion that the state would grant incentives for that project in the amount of 20% of the total investment.

Mr. Apat said that the new factory was part of Gorenje's development strategy until 2015, so that the new factory spanning about 20,000 square meters should be completed in a year and half.

Gorenje earlier rented a 4.81-hectare land lot for the period of 99 years for RSD 180 million.