 |
BELGRADE (Serbia), December 25 (SeeNews) – Most Serbian émigrés rarely come back to visit the country of their roots, much less seek Business opportunities in a nation until very recently associated in the first place with the violent breakup of the former Yugoslav federation.
But not Milovan Perisic.
After more then 30 years of living and doing Business in Canada Perisic has decided to take advantage of the fertile Business ground Serbia is gradually turning into.
Perisic’s plan is to use his Canadian expertise and build a $20 million (14.3 million euro) factory for aluminium and polyvinyl chloride (PVC) profiles for windows and doors in his native village of Mokrin, he told SeeNews over the phone on Thursday from the village located in Serbia’s northern province of Vojvodina.
“I don’t care very much about the location of the factory because I plan to export more than 90% of its production. I chose Mokrin because it is a place I was born in and have many beautiful memories associated with it. And I’ve always felt I needed to give back something to the community.”
He added that the factory will export mainly to Canada, the European Union and Belarus.
The factory’s annual turnover is expected to reach some 100 million euro three years after it becomes operational, Perisic said. It will employ between 200 to 250 and should start work in six to eight months from now.
“Much depends on the administrative apparatus here, but we’ve had very constructive meetings with officials from the Ministry of Diaspora and things appear very promising,” Perisic said.
“Based on our analysis and market prices, our net profit should be some 20% of the gross turnover, so some 20 million euro annually,” he added.
Perisic believes that Serbia offers ample opportunities for entrepreneurs seeking to cut production costs amidst the global financial crisis.
“Step No. 1 is that monthly wages here are some 200-300 euro on average, compared to some 3,000 back in Canada. Step No. 2 is that the taxes are lower here in general, so when you put this all on paper, your final product comes out 50% cheaper than if you were to produce it in Canada,” he said.
Foreign direct investment (FDI) in Serbia, a country of some 10 million, totals about $17 billion since 2001. The country attracted roughly $4.2 billion in FDI this year, compared to some $2.0 billion in 2007.
Serbia made substantial progress towards joining the EU with the signing of a Stabilisation and Association Agreement (SAA) with the bloc in April and the arrest of Bosnian Serb wartime leader Radovan Karadzic in August, currently standing trial on charges of genocide and crimes against non-Serb civilians in Bosnia committed during the 1992-95 war there.
The head of the Delegation of the European Commission to Serbia Zozep Ljoveras said in November that Serbia stands a chance of getting a EU candidate status in 2009 if it fully cooperates with the Hague war crimes tribunal and makes significant legal and economic reforms.
“Obviously, the price factor is very important at times of crisis in order to survive. But I also hope to break the ice and attract more investors here," Perisic said.
“I hope to bring the knowledge and expertise back to Serbia and encourage everyone to see the potential and opportunities here and help increase the standard of living for people here.”
($=0.7141 euro)
Search for: see |
Search for: market |
Search for: Serbia |
Search for: analysis |
 | Business SEE TOP 100 - the ranking of the largest companies in Southeast Europe (SEE). SEE TOP 100 is the only ranking of the biggest companies and banks in SEE and a comprehensive, in-depth guide to the economies of the emerging markets of SEE. |
Terms & ConditionsPrivacyCopyrightPublished by All Data Processing. All rights reserved. Created by Ladger.
