April 26 (Bloomberg) -- Gorenje Group d.d. expanded its business in Serbia as Slovenia’s largest appliance maker seeks to cut costs.
Gorenje, based in Velenje, signed an agreement with the Serbian government to expand its refrigerator unit in the western town of Valjevo in an investment worth 20 million euros ($26 million), the Slovenian company said in a regulatory statement today. The new facility will create 400 jobs by 2015 and the government in the capital Belgrade will provide 10,000 euros for each new employee, it said.
The project is part of “Gorenje’s activities to optimize the manufacturing operations,” the company said in the statement. The decision “will not affect the level of employment at our factories in Slovenia.”
Gorenje, Slovenia’s biggest exporting company, is seeking to cut costs by relocating some production from Western Europe to the eastern part of the continent with lower taxes and wages as the appliance maker tackles rising commodity prices. Last month, it said it will relocate its cooker producing plant from Lahti in Finland to the Czech Republic.
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