MITROVIĆ: SRPSKA WILL EXPAND SUPPORT MEASURES FOR INVESTORS

LAKTAŠI, DECEMBER 3 /SRNA/ – Minister for Economy and Entrepreneurship of Republika Srpska Vojin Mitrović has said today that the Government of Srpska and the line ministry will continue to support investors, as this benefits both individual businesses and the entire economy of Srpska.

"In this way, we raise production to a higher technological level while also increasing the number of employees, which is extremely important for the economy of Srpska", Mitrović told reporters in Aleksandrovac near Laktaši, where he visited the company Mahle Electric Drives Bosnia. Mitrović emphasized that production facilities equipped with highly productive technologies will be competitive on the market, and that the ministry will support such projects through incentive regulations of special importance, as well as through wage increases for workers or investments in equipment, tools, and the transition to green and circular economy models. "This will strengthen the entire economy of Republika Srpska", Mitrović stressed. He noted that increasing production volume and employment is a key goal of the leadership of the company Mahle, which employs highly qualified staff, including engineers, and maintains strong cooperation with the Faculty of Mechanical Engineering in Banja Luka. Mitrović added that a regulation on incentives for investments of special importance, aimed at new advanced technologies and cases of hiring large numbers of workers, has been put into practice. "Domestic and foreign companies that employ more than 100 workers or invest more than BAM 10 million in new technologies and equipment are eligible to receive incentives of up to BAM 5 million, based on accepted investments of up to 30 percent. Additionally, for newly hired workers within a two-year period, the regulation provides for exemption from payroll taxes and contributions", Mitrović explained. The President of the Republika Srpska Chamber of Commerce Goran Račić said that Mahle was the largest foreign investor in BiH last year and that the company’s revenues increased by more than 50 percent this year. Račić noted that in 2021 Male had 400 employees, compared to 680 today. "The company plans to have nearly 1,000 employees by the end of the decade, with revenues increasing year after year", Račić said. He stressed the importance of maintaining the current categorization of the Gradiška border crossing, warning that any downgrade could put Mahle and other companies operating in the Laktaši and Gradiška areas in a difficult situation. Laktaši Mayor Miroslav Bojić said the city has attracted many investors over the past four years, including Mahle, adding that the total value of these investments is around BAM 500 million. "The administration of Laktaši and other local communities must serve as a link between businesses, the Chamber of Commerce, the line ministry, and the Government of Srpska in resolving all issues affecting the business sector", Bojić said. He also highlighted that Mahle has ambitious plans, with projected turnover in the Laktaši area expected to reach about EUR 90 million next year. The new production plant of Mahle Electric Drives Bosnia opened in April last year, with the value of this German investment estimated at around EUR 20 million. Mahle is a leading supplier of systems for the automotive industry, and components produced by the company are found in every second vehicle in the world—covering passenger cars, trucks, and heavy-duty machinery. The new production facility in Aleksandrovac spans over the area of 30,000 square meters.