Automobile factory Priboj (FAP) and Chinese truck manufacturer "Dongfeng" signed the Memorandum of Understanding today (November 23, 2009) in Belgrade. According to that document, FAP is going to start assembling Chinese trucks in Priboj in 2010.
The Minister of Economy of Serbia, Mlađan Dinkić, said that that Memorandum anticipated assembling of four models of Chinese trucks in the first phase, but he did not specify how many vehicles would be assembled.
Dinkić said that the Government of Serbia would set aside up to 1m EUR in 2010 for modernization of equipment in FAP in order to prepare that factory for commencement of works on assembling trucks.
According to his words, the second phase anticipates realization of the joint investments by both sides, but he did not specify how big they would be.
- The long-term plan is that 51% of total value of every truck produced in FAP originate from Serbia and that the trucks be exported to the markets of the countries with which Serbia signed the free trade agreements - said Dinkić.
He said that important part of the agreement was the transfer of know-how with the help of engineers from the Chinese factory.
According to Serbian Minister of Economy, it is important for the automobile industry in western Serbia to be refurbished, and that is why the Government will back this project.
He reminded that the signing of the Memorandum was the result of the visit of the President of Serbia, Boris Tadić, to China in August, on the occasion of which the agreement on establishment of strategic partnership between the two countries, especially in the field of economy, had been reached.
The contract was signed by the CEO of FAP, Mirko Stojović, and the Deputy Director General of "Dongfeng", Hu Jianguo.
Chinese company "Dongfeng" is one of the world's largest manufacturers of trucks with the annual production of 1.2m vehicles.