Source: Tanjug | Sunday, 15.03.2020.| 10:58
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State aid worth EUR 16.4 million approved for Chinese investment

Illustration (Photo: bibiphoto/shutterstock)
The state aid of EUR 16.4 million for the Chinese company Xingyu Automotive Lighting Systems d.o.o. Beograd-Savski Venac for an investment of at least EUR 60 million in the construction of a factory in Nis is in line with the regulations, the Commission for Control of State Aid has announced.

The Chinese investor has obliged to invest EUR 7.5 million for the land, EUR 32.7 million for the construction of the facilities and EUR 19.6 million for new equipment by the end of 2023, and the salary costs for the new employees related to the investments over a two-year period, after reaching the full employment level, will amount to at least EUR 13.8 million.

This greenfield investment in the territory of Nis will get state aid outside the market conditions as it will permanently employ at least 1,000 new workers for a period of five years from the completion of the investment project.

The investor is owned by Changzhou Xingyu Automotive Lighting Systems Co. Ltd from China, which produces car lighting, has 5,731 workers and an estimated EUR 650 million of income in 2018, the decision says and adds that the production activities in Nis will be carried out on an area of 16.55 hectares.

The state aid of EUR 16.4 million for this investment of special importance for the Republic of Serbia will be paid in four installments.
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