New investment in Kovin – Turkish factory Mel Tekstil to start producing by end-2020

This year, the Municipality of Kovin should get a new factory, as the Memorandum of Understanding was signed this Friday, January 24, between Kovin and the Istanbul-based company Mel Tekstil.

The document is in fact a pre-contract with the Turkish investor, whose arrival to Kovin was announced by Serbian Prime Minister Ana Brnabic in late 2019. The signing was attended by representatives of the Ministry of Trade, Tourism and Telecommunications, which has been involved in the negotiations from the beginning and which has provided funds for the Municipality of Kovin to purchase the land and the facility of the former Beko (Mladost facility), it is said on the municipality's website.

The plan is for the Municipality of Kovin to renovate and lease, for a period of 10 years, with the possibility of extending the contract, around 3,700 m2 of the business space of the former Beko factory in Kovin and 2 hectares and 56 ares on the accompanying plot of land. The memorandum also defines the obligations of Mel Tekstil. Among other things, the investor would be obliged to train and employ 100 workers by the end of 2020 and another 200 by 2022.

– The municipality will help the investor as much as it can when it comes to the issuing of the necessary permits and authorizations, and the production facility itself will be reconstructed and adapted to the needs of the renter and the textile industry standards – Sanja Petrovic, the president of the municipality of Kovin, said after the signing of the memorandum.

Mel Tekstil has facilities in Germany and Turkey, and the plan is for the facility to be moved from Istanbul to Kovin. As Suleyman Erdogan, the general manager of Mel Tekstil, pointed out, the reasons primarily have to do with the logistics.

– Kovin has been chosen thanks to the good positions and the transportation connections to the demanding market of the western Europe. We will put our products on the market more quickly and easily, and we have also been assured that we will get qualified workers here in Kovin – the investor said.

A potential expansion of the facility has been announced as well, and the production in Kovin will begin three months after the renovated business premises are handed over to Mel Tekstil.

Opština Kovin

Ministarstvo turizma i omladine Republike Srbije

Mel Tekstil

Municipality of Kovin

Ministry of Trade Tourism and Telecommunications

Beko

Mladost facility

Sanja Petrović

Suleyman Erdogan

textile factory

car seat covers

Kovin investments

investments in Kovin