Turkish knitters urged to set up manufacturing plants in Serbia

Turkish investment in Serbia is expected to grow in the short term as the country offers the best conditions for foreign direct investments (FDI) in the Western Balkans. The Balkan country is offering financial incentives, such as government subsidies, as well as a prime strategic position as a link between southern and central Europe and the emerging markets of Eastern Europe, said Aleksandar Medjedovic , the chairman of Turkey – Serbia Business Council.

Currently, 12 or 13 Turkish companies operate factories in Serbia and their number is expected to double by the end of the year, as Turkish knitted fabric and knitwear manufacturers are being urged to set up manufacturing plants in Serbia.

Nis and the surrounding region has attracted a growing level of investment from foreign textile firms in recent years with manufacturers attracted by financial incentives, such as government subsidies, as well as its strategic position as a link between southern and central Europe and the emerging markets of Eastern Europe.

Turkish investors began looking at the Serbian market five years ago, when some companies opened factories in southern Serbia, mainly in the textile sector, and interest has been constantly growing, Medjedovic said during the Vienna Economic Talks forum in Belgrade.

Most recently, Aster Textile, one of the largest and fast growing knitted jersey and woven womenswear, menswear and childrenswear producers in Turkey, invested €7.2 million on a new plant in the southern Serbian city of Nis. Of the total €7.2 million investment, €2 million was funded by State Aid. The site employs 250 people although this number is expected to rise to more than 2,000 over the next three years.

Within three years, Aster said that it would be producing garments worth around €60 million of womens and menswear per year for some of the world’s leading brands.