South Korea's Yura Corp. began construction work on August 20 on a new factory in the southern Serbian town of Nis that will produce electrical car parts, officials said.
The Yura Corp., which counts carmakers Hyundai and Kia among its biggest clients, will invest some 15 million euros (US$19.2 million) in the factory, the Serbian economy ministry said.
The Serbian government, which provided the land on which the plant is being built, plans to offer the company reduced payroll taxes.
The factory, which will employ around 1,500 people, is due to begin production next May.
In April, the Yura Corp. bought the ailing Serbian company Zastava Elektro, which makes electrical installations for cars, for three million euros. That was the first direct investment from a Korean firm in Serbia.
Copyright Agence France-Presse, 2010