Serbia's government said Indian company Tafe plans to produce 5,000 tractors annually in the country in the next five years.
Tafe, which acquired Serbian insolvent tractor manufacturer Industrija Masina i Traktora (IMT) for 66 million dinars ($660,000/559,000 euro) in April, aims to export part of the output of its Serbian plant to Russia, the government said in a statement on Monday.
The Indian company intends to produce equipment for tractors with Euro 3 engines in Serbia and to make multiple investments in the overhaul of the IMT factory, the CEO of Tafe, Mallika Srinivasan, said during a meeting with Serbian prime minister Ana Brnabic.
The company will primarily focus on the production of machinery intended for small farms, Srinivasan said.
Tafe intends to produce tractors under the IMT brand, with 50% of their parts to be manufactured in Serbia, the vice president of the Indian company, Kamal Ahuja, said in April.
IMT was declared insolvent and ceased production in December 2015.
(1 euro = 118.131 dinars)