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In terms of the development and investment criteria, Kragujevac jumped from the 137th place to the 3rd place in Serbia

Foreign companies which open their offices in Kragujevac covering the territory of Serbia and beyond, are entitled to a reduced and guaranteed rent of €10,000 per hectare of land providing they hire at least 20 people per each hectare of land they rent. Kragujevac is 140 km from Belgrade, and in close proximity to the pan-European route, Corridor X. The town will be linked to Corridor X by a 26-km first class main road (the remaining 10-km segment is currently being built).

Apart from the car industry, the best branches for investing are in catering and tourism. Kragujevac needs more hotels since the town keeps getting more and more tourists, as well as people who are moving here. In terms of the development and investment criteria, Kragujevac jumped from the 137th place to the 3rd place in Serbia.

Several industrial zones have either partial or full infrastructure and these are: Skladište, Servis I, Servis II, Denino Brdo, Tankosićeva, Petrovac, Metino brdo, Cvetojevac, and the zone stretching along the M11 motorway. There are 1,440 companies operating in Kragujevac with most of them being small enterprises. The predominant economic branches are commerce, followed by the processing industry, research & development, technical innovation industry, transport industry, storage and logistics. 

Person in charge of investor relations:
Nebojša Vasiljević
Member of the City Council for Investments and Development of City Resources
Telephone: ++381 34 506 103
E-mail: n.vasiljevic@gmail.com
Website: www.kragujevac.rs
Potentials and dvantages of the Municipality

Investment potential and incentives for investors are reflected in that an investor is given the right to have the auctioned amount of the land rent reduced depending on the number of his employees and the costs of the workplace. Namely: if an investor has from 5 to 19 employees, the incentive is €2,000 per workplace, from 20 to 50 employees - €2,500 per workplace, from 51 to 200 employees - €5,000 per workplace, and over 200 employees - €7,000 per workplace. If an investor opens an IT or software engineering company, the incentive, for companies with more than 20 employees, is €15,000 per employee.” – says the Mayor of Kragujevac Veroljub Stevanović.

Foreign companies which open their offices in Kragujevac covering the territory of Serbia and beyond, are entitled to a reduced and guaranteed rent of €10,000 per hectare of land providing they hire at least 20 people per each hectare of land they rent. The town has good quality utility and transport infrastructures and is well-connected to nearby towns. Kragujevac is 140 km from Belgrade, and in close proximity to the pan-European route, Corridor X. The town will be linked to Corridor X by a 26-km first class main road (the remaining 10-km segment is currently being built). Apart from the extensive road network, the railways here will take you in four different directions: Belgrade and Budapest, Niš and Sofia, Podgorica and Bar (seaport) and Skopje and Thessaloniki (seaport). Maritime transport is carried out via the Port of Bar which can be reached by the Kragujevac-Bar railroad (also used by Fiat to transport its latest model Fiat 500L). River transport is carried out via the Danube port of Smederevo.

Kragujevac University has 12 faculties with over 19,100 students. The town also has a number of elementary and high schools, with educational institutions enjoying the unconditional support of local authorities. Apart from having a health clinic, the Public Pharmacies of Kragujevac, the Dentistry Institute and the Emergency Room, Kragujevac is a town to which two million people gravitate. The town also has a sports stadium, the Jezero Sport Hall, the Park Hall, an indoor swimming pool, the Milorad Čavić Swimming Academy, and the most modern bowling alley and shooting range in the Balkans.
 
The most efficient investments

Apart from the car industry, the best branches for investing are in catering and tourism. Kragujevac needs more hotels since we keep getting more and more tourists, as well as people who are moving here.  Approach to investors is very dedicated, and, in matter of only a few years, Kragujevac went from being in “the valley of the hungry” to “the city of the future”. In terms of the development and investment criteria, The City  jumped from the 137th place to the 3rd place in Serbia.  Formula is to invest as much as one can, even during the economic crisis, obtain the cheapest possible loans, keep the investments going, create an investment-conducive environment, be quick on our toes once the investors come and promote ourselves.



Industrial zones

Several industrial zones have either partial or full infrastructure and these are: Skladište, Servis I, Servis II, Denino Brdo, Tankosićeva, Petrovac, Metino brdo, Cvetojevac, and the zone stretching along the M11 motorway. There are 1,440 companies operating in Kragujevac with most of them being small enterprises (94%). Four percent are medium companies and 2% are large enterprises. The predominant economic branches are commerce, followed by the processing industry, research & development, technical innovation industry, transport industry, storage and logistics.  The average salary in Kragujevac in December 2012 was 38,547 dinars.

The water supply and sewage grid cover 93% and 73% of the town's territory respectively, while 78% of households (46,471) have gas supply.

The town is rapidly developing which can be seen in the newly built facilities, new companies and projects that have been implemented in the last year or so.

All four suppliers of Fiat in Grošnica - Johnson Controls, Sigit, PMC and HTL - launched their production in March. A new model of Fiat, the 500 L, is produced in Kragujevac, and it had its premiere at the Geneva Car Show. 80% of the parts for this particular model are produced in Serbia.  Fiat’s suppliers in Grošnica produce over 60 different parts for the Fiat 500L and close to €60 million was spent on their production equipment.

VIP Mobile has spent €3.2 million on the opening of a regional telecommunications centre in Kragujevac.

Local authorities provided 104 million dinars for construction and the latest equipment for the Health Station and School Dispensary in downtown Kragujevac, where 18,000 adults and 15,000 children can receive treatment.

The plan is also to finish constructing the first class Kragujevac-Lapovo road by the year’s end. This road will connect Kragujevac to Corridor X. Also, there is a plan to construct a northbound bypass, four lanes of the road in Knez Miloš Street in the town’s centre and the Mala Vaga roundabout. The construction of a new building that will house the Emergency Room will start in a few days, while, following the signing of an agreement with the Ministry of Education and Kragujevac University, The town is going to start building  a Centre for Regenerative Medicine with a Stem Cell Bank. This institute will be managed by the Faculty of Medicine and will be the first of its kind in the Balkans. The town authorities provided a 1.7 hectare land plot for free. The retail value of this land plot is €2.5 million.

Kragujevac is definitely very appealing to foreign investors and the list of the foreign companies which operate here just proves that.
Companies that are already doing business-manufacturing in Kragujevac

The most important investor is certainly Italian carmaker Fiat which formed a joint venture company called Fiat Automobili Srbija with the Serbian government. The value of this investment is over a billion euros. The four biggest suppliers of Fiat are situated in the Grošnica Free Zone. Through the privatization process, i.e., thanks to the acquisition of companies formerly owned by the state and greenfield investments, we now have companies like Meggle (Germany), NTUP, TPV and Viator & Vector (Slovenia), Intertras (Bulgaria), Rap Marine (Norway), and Hödlmayr (Austria) doing business here. Other significant investors are large supermarket chains like Metro, Mercator (Roda Center), Delta, DIS, Idea and the biggest among them, Israeli company Plaza which opened a huge shopping mall in March last year. Also, Supernova has announced its arrival.

In terms of the processing industry, the most important investors are Forma Ideale (furniture production), Meggle and Kuč Company (dairies), Flores (beverage production), Prizma (production of medical equipment) and Swisslion (confectionary).

Equipment administration and deadlines for issuance of the necessary permits to prospective investors

The town  provide the full logistics support both to foreign and domestic investors in terms of helping them with obtaining the required documents. Location permits are usually issued in seven days at the most, providing that investors don’t have additional requirements. Building permits are issued in two days at the most from the moment an investor submits the completed, technically correct and approved main project design.

Kragujevac is way ahead of other towns in regard to investments and development potential. The great results accomplished by the water polo players from Kragujevac have to be mention, as well as by BC Radnički, the indoor soccer team Ekonomac, the American football team Wild Boars, as well as our volleyball and handball players. To that end, we would like to invite investors to come here since if there was enough room for Fiat, there will be enough room for them too. Motto of the town is: ‘Choose to be in the company of successful people!’”