Germany's Higson Group invests EUR 4 million in textile factory in Zitoradja

Serbian Minister of Economy and Regional Development Nebojsa Ciric and Higson Group (HG) CEO Franz Koller signed Tuesday a Memorandum of Understanding regarding the intent of this German company to invest EUR 4 million in a textile factory in Zitoradja, it was announced on the Serbian government's website.

After signing the MoU, Ciric said that HG planned to start production in the municipality of Zitoradja, in the former factory Amer Prom, and to employ about 500 workers in the first year of operations, whereas another 1,000 to 1,500 workers would be hired over the next two years.

This investment should start to be implemented in June or July, the minister said and added that that company specialized in the design, production and distribution of textile garments and was best known for its sportswear brand Iguana.

The minister underlined that it was very important that HG would open a factory in Zitoradja, which was an underdeveloped area with a high unemployment rate.

In the first phase, the company would invest EUR 1 million in high-tech machines, while the second phase would cost HG an additional EUR 750,000.

Ciric explained that the products would be exported to the EU, Russia and other countries with which Serbia had free trade agreements, noting that it was good that one more investor in the textile sector was arriving in Serbia.

He recalled that Serbia had been the leader in attracting investments in 2011 and that the same trend continued in 2012, thus proving the great importance of the Serbian government’s strategy for attracting investments.

HG, whose annual turnover is USD 60 million, exports three million pieces of finished products from its factories in Indonesia and Myanmar every year. It plans to move about 10-15% of its production capacity from Asia to Serbia.