The Serbian government will be awarding a EUR4,275,000 subsidy to the Chinese Yanfeng company, which opened a factory for motor vehicle parts and additional equipment in Kragujevac last year. In return the company, which currently has 38 workers, has taken on the obligation of hiring at least 700 new workers by the end of 2023, according to a contract signed with the Ministry of the Economy.
Their base salary will be at least 20 percent higher than the minimum wage. By the end of 2023 Yanfeng also has the obligation of investing at least EUR21.75m in the Kragujevac factory of which 25 percent must be its own funds, and not state aid, Nova Ekonomija has reported.
The subsidy will be disbursed in five unequal installments from 2020 to 2024. Yanfeng Automotive Interior Systems is owned by the Hungarian Yanfeng and is part of Yanfeng Automative Interiors in Shanghai, China.
The contract also states that the investor has manufacturing facilities in the Czech Republic, Germany, Hungary, Italy, Mexico, Slovakia, Spain and the U.S. Yanfeng’s main market is the EU.