13.7 mln euro subsidy approved for NIDEC investment in Novi Sad

NOVI SAD - Serbia's commission for control of state aid has approved a 13.7 mln euro government subsidy for a 130.7 mln euro investment in Novi Sad by two Serbian firms operating as part of Japan's NIDEC Group.

A document published on the commission's website said NIDEC Motor Serbia would get 9.6 mln euros in assistance from the Serbian Ministry of Economy for a 92.8 mln euro investment, with NIDEC Elesys Europa to receive 4 mln euros for a 37.8 mln euro investment.

The projects are a single investment by two companies that have the same owner.

Under the subsidy deal, NIDEC Motor Serbia is obliged to hire 116 more workers on wages not lower than the minimum wage increased by 20 pct while NIDEC Europa will hire at least 100 new workers.

At a future Novi Sad plant, due to be completed by the end of 2024 at the latest, NIDEC will be manufacturing motor vehicle parts as well as electrical and electronic parts.