General Manager of the VDL Bus&Coach group Henri Kulen and General Manager of Neobus Radenko Kostic signed in Belgrade a €30 million partnership agreement, under which the two companies will manufacture and export Bova Lexio suburban buses to the European market.

Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic, who attended the signing of the agreement, said that the planned production is 450 buses over the next three years for export to France, Italy and Germany.

The Minister said that the agreement will create 26 new jobs, increasing the work force of the Novi Sad based company Neobus to 240 workers.

Dinkic said that the Serbian government recognised the importance of this contract for Neobus and approved a loan of €1.5 million to the company from the Development Fund to help it start production.

He said that there are plans to approve another € 1.2 million loan for updating equipment, adding that Neobus has proved that it is a company capable of meeting European production standards.

Neobus’ deal with the Dutch partner is the first in a series of good news for the Serbian car industry over the next several weeks, Dinkic said.

He said that the Neobus’ business deal is important because it will help other domestic companies to make profits, since they will be manufacturing bus parts.

Neobus director Radenko Kostic specified that production will begin next week, with an annual output of 150 buses, each worth between €160,000 and €180,000 on the market.

Lexio buses will be produced in two versions, with 53 and 63 seats, that is, 12 and 13 metres long and 90% of the production will be exported.

Dutch Ambassador to Serbia Ron van Dartel voiced his pleasure over the signed deal, adding that it will result in increased export for Serbia.

This joint deal will also show that Serbia is a competitive market player, he added.

Also present at the signing was Novi Sad mayor Igor Pavlicic