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Germany’s Norma Group Coming to Subotica, Vojvodina

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German company Norma Group will start construction of an automotive parts factory in Subotica in November, 2010. The agreement on the construction of the new €11.2 million factory was signed by Mladjan Dinkic, Minister of Economy and Regional Development; John Stephenson, Director of Norma Group; and Sasa Vucinic, Mayor of Subotica. The government of Serbia has agreed to set aside €5,000 for each new job created, while the city of Subotica will provide free land to the company. The new factory will occupy an area of 12,000 m2, will employ 327 people, and its entire production will be exported.

City of Subotica donated land to Norma Group

At the end of November, with the consent of the Government of Serbia, city of Subotica allotted a land to German Norma Group to build a factory of components for the automotive industry on it, it is announced on the website of Subotica.

The location allotted to Norma Group occupies about 3.13 ha and it is situated in Mali Bajmok business zone. The land is worth 305,000 euros and that is how much a bank guarantee provided by the investor will be worth as well.

Prior to June 1, 2011, Subotica should equip the land with the public utility infrastructure, while Norma Group should build a factory and employ 140 people in it already during the first year of operations. The German investor has also promised not to sell that lot until year 2015.

As it was announced earlier, Norma Group plans to invest about 12 million euros in the factory in Subotica and the production unit should span about 12,000 square meters.

Serbia's Norma Group factory to receive €5,000 per each new job it creates

Deputy Prime Minister for Economy and Regional Development Verica Kalanovic visited the construction site of a new Norma Group factory in Subotica, a producer of cooling systems for the car industry.

Kalanovic stressed that thanks to the programme of the Ministry of Economy and Regional Development and the Serbian Investment and Export Promotion Agency (SIEPA), this company will receive €5,000 per each new job it creates and it will hire around 450 workers.

She observed that the total investment is worth €11,250,000, and company products will be sold in the European market.

Norma Group currently has 12 factories worldwide and employs 3,400 workers, she said, adding that city administration provided construction land free-of-charge, as this is a world renowned producer and distributor of car parts for a number of car producers.

The contract on constructing a Norma Group factory in Subotica was signed last September. So far 85% of the works has been completed, Kalanovic concluded.

The Deputy Prime Minister pointed out that this investment will complete the transfer of production of micromotors for blinds in Subotica, noting that the level of investment is more than €1 million.

She said that the entire production of the company is intended for export, adding that the factory by the end of the year will employ 100 workers, and an additional 100 workers next year.

The Serbian government has been conducting active measures to create new jobs, open new businesses and supports all foreign investors, said Kalanovic.

Good infrastructure and transport links are of great importance for Serbia's inclusion on the demanding European market, she stressed.

Dulic said that the arrival of the German investors in Subotica is important for the city and pointed out that German investors would not invest in places with slow administration, poor business environment and corruption.

The opening of the Dunkermotoren factory in Subotica is a confirmation that the state and city authorities of Subotica have done their work well, he said, adding that the government invested in the city through incentives for employment, infrastructure, equipping and expanding duty-free zone.

The opening was also attended member of the Managing Board of Dunkermotoren Nikolaus Gräf, representatives of German Chamber of Commerce in Serbia and local authorities.

Who is NORMA Group

NORMA Group is a world leader in the global market for connecting technology. The company cooperates with Volkswagen, Audi, Peugeot and Citroën and has 12 manufacturing facilities across the world. The company has approximately 3,400 employees.

NORMA was opting to choose between Serbia, Turkey, Bulgaria and Romania, but, after representatives of the Ministry of Economy and Regional Development and the SIEPA presented the advantages of Serbia, the company made a final decision.

Dinkic announced that early next year NORMA will employ the first group of workers who will be trained in factories in Poland.

In addition to automotive parts, "Norma" manufactures sophisticated products and components for the construction, infrastructure, shipbuilding and aviation industries.

The minimum gross salary for employees in NORMA will amount to approximately €400, so the annual budget for 330 employees will be €1.584 million.

Subotica provided free land in the free industrial zone as well as infrastructural equipment.

The new factory will cover 12,000 square metres, and everything produced will be exported to the markets of Western and Central Europe.