Serbia: Business News

BOYSEN

INVESTMENT WORTH €65 MILLION IN SUBOTICA

Boysen, a German producer of exhaust systems for the car industry, is planning an investment of €65 million in the construction of a plant in Subotica, where it will employ over 500 workers over a period of five years. The investment will be realized within the Mali Bajmok Industrial Zone, on a parcel of 10 hectares, which will be given to the investor for use free of charge. The plan is to build a production facility of 35,000 m2. To that end, a study was prepared on the justifiability of alienating the land without a fee, which shows that the income for the City of Subotica, as the owner of the parcel, over the next five years will exceed its estimated value. The final word on the study will be given by the City Assembly of Subotica and the Government of the Republic of Serbia.

TAKES OVER THE OPERATION OF AERODROM NIKOLA TESLA

VINCI

Vinci Airports, the airport division of construction and concession company Vinci, has assumed the management of Belgrade Nikola Tesla Airport. In January 2018, Vinci Airports was selected as the preferred bidder for the Belgrade Nikola Tesla Airport concession by Serbia and Airport Nikola Tesla (ANT). The company was awarded a 25-year concession to run Belgrade airport in lieu of a one-time concession fee of €501m. The French airport operator also agreed to invest another €732m in new infrastructure that includes financing, operation, maintenance, extension and upgrade of the existing airport terminal and runways. Vinci will look to use its partnership with over 200 airlines to boost the airport’s traffic and connectivity. Vinci Airports awarded a €262m contract to Greek construction company GEK Terna in January this year for the construction and refurbishment of Belgrade’s Nikola Tesla airport. Coca-Cola HBC

GERMANY’S ZF GROUP

NEW FACTORY IN PANČEVO

Germany’s ZF Friedrichshafen, or ZF Group, plans to open a factory for electric vehicle (EV) parts in Pančevo, in northern Serbia. In April, the Pancevo city government said ZF Friedrichshafen plans to invest a total of €85 million in the construction of the factory. The company started the construction works on the project in June 2018. In June, ZF Friedrichshafen also plans to open a research and development (R&D) centre with 100 employees in Serbia, an investment project worth €160 million. In the first phase of the development of the factory, the German company plans to produce electric shafts for premium original equipment manufacturers, E-Mobility electric motors, electronic and mechatronic gearboxes, microswitches and printed circuit boards.

COCA- COLA

BEGINS PROCESS OF ACQUISITION OF BAMBI

Coca-Cola HBC AG has begun the process of acquisition of the leading confectionery company Bambi from Mid Europa Partners, worth €260 million. The final agreement will be defined later on, and the acquisition is subject to regular conditions and authorizations by the competent bodies, which is why the process is expected to be completed in the second quarter of 2019. The strategic intention of the company is for this acquisition to provide it with new opportunities for development in Serbia and the region and the possibility of expansion to complementary product categories.

NEC

TMS FOR TELEKOM SRBIJA

NEC, a Japanese multinational provider of information technology services and products, has announced the provision of an advanced Traffic Management Solution (TMS) for Telekom Srbija, Serbia’s largest mobile operator. The system, which enables a high-level of data communications traffic control and improves the quality of experience (QoE) for users, is scheduled to begin operating in May and will be supplied through Mobycore, a Serbia-based system integrator. TMS systems include the ability to apply optimum communication parametres depending on network characteristics and traffic conditions, as well as the ability to control re-transmissions due to packet loss. NEC will also contribute to strengthening Telekom Srbija’s competitiveness by offering solutions that enhance network security using TMS.

THE NEW MERCEDES-BENZ GLE

ALL KINDS OF STRENGTH

The new Mercedes-Benz GLE has a wealth of innovations. The active suspension system E-ACTIVE BODY CONTROL on a 48-volt basis is a world first. The interior is even more spacious and comfortable, with a third seat row available on request. The infotainment system has larger screens, a fullcolour head-up display with a resolution of 720 x 240 pixels and the MBUX Interior Assistant. The new 4MATIC ensures great agility on the road and superior performance off the beaten track. The GLE will receive a completely new range of engines. In 1997 Mercedes-Benz founded the premium SUV segment with the launch of the M-Class. Since autumn 2015 the model family has borne the name GLE, emphasising its positioning as an SUV in the E Class model family. At present Mercedes-Benz is highly successfully represented with seven models in the SUV segment (GLA, GLC, GLC Coupé, GLE, GLE Coupé, GLS, G-Class). The new Mercedes-Benz GLE will be presented to the public in Serbia for the first time at the 54th Begrade International Motor Show (20 to 31 March 2019). It will be in the dealerships in shotly after fair.

INFRASTRUCTURE

SERBIA TO INVEST €530 MLN IN NEW ROADS

Serbia’s government plans to invest €530 million in the construction of a high-speed road linking Zrenjanin to Novi Sad and a Zrenjanin-Belgrade motorway. Investment in the construction of the 56 km-long Belgrade-Zrenjanin motorway will total 280 million euro, while a further €250 million will be invested in the 50 km-long Zrenjanin-Novi Sad expressway. The government is already in talks with Chinese partners for the construction of the Belgrade-Zrenjanin motorway. Earlier this month, the Serbian government said it approved a project for the construction of a motorway rather than an expressway to link Belgrade to Zrenjanin, given the economic development of the Banat District. Chinese company Shandong Linglong said in August it plans to invest $994.4 million in the construction of a tyre factory in Zrenjanin.