Serbia's economy Ministry said it had agreed to give Lafarge Srbija 10.6-million-euro (12.3-million-dollar) subsidy to help it build a new cement plant in Belgrade's Obrenovac municipality. Lafarge Serbia is part of Holcim Group, a Swiss manufacturer of building materials. The
Belgrade government announced plans for the new factory in Lafarge Serbia in August last year. Lafarge plans to invest a total of 112.25 million euros in the new plant by the end of 2027, according to the subsidy agreement signed on Oct. 9 and published by the Economy Ministry on Thursday.
According to the contract, Lafarge Serbia, which had 269 employees when it applied for subsidies in October 2024, has committed to recruiting 51 additional full-time permanent employees by the end of 2026 and completing the investment by the end of 2027. In addition, the company has pledged to maintain at least 320 permanent employees for five years after the completion of the project.
According to the contract, the Ministry of Economy will pay the subsidy in three annual installments between 2026 and 2028, which accounts for 9.46% of the total investment.
Lafarge Serbia's Obrenovac plant will produce cement from ash produced by nearby thermal power plants operated by state-owned power company Elektroprivreda Srbije, or EPS. In February, EPS signed a contract with a consortium of Lafarge Serbia and local fertilizer producer Elixir Group to sell 20 million tons of ash over the next decade.
In February, Lafarge Serbia also acquired the Jazovnik quarry in the northwestern city of Vladimirci, about 30 kilometers from the planned Obrenovac plant. It said this would allow it to set up the entire logistics chain for the development of the new industrial park.
Lafarge Serbia already operates a cement factory in the northwestern city of Bezijn. In 2024, the company posted an operating income of 21.8 billion dinars (216 million dollars/186 million euros) and a net profit of 5.5 billion dinars, compared with 19.5 billion dinars and 3.9 billion dinars in the previous year, according to its annual financial statement.
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