Xingyu to Invest 77 Million Euros in New Nis Plant
The Ministry of Economy and Xingyu signed an incentive contract worth 8.2 million euros for a new plant in Nis, with payment in five installments from 2027 to 2031.
The new plant that Chinese company Xingyu Automotive Lighting Systems is building in Nis is worth 77 million euros, and the state is putting in 8.2 million euros in incentives. The Ministry of Economy and the company signed the incentive contract on June 10 this year, covering construction of a new production facility for automotive lighting in the city.
The approved 8.2 million euros covers 10.6% of the eligible investment costs in tangible and intangible assets. At least 25% of the total investment obligation has to come from the company’s own funds, meaning sources that carry no state aid.
How Much the State Pays Per New Job
The project calls for at least 100 new jobs, full time and permanent, to be filled by the end of 2030. Divided across that number, the incentive works out to 82,000 euros per job.
Xingyu employed 242 people in Nis at the time it filed its application, so after the investment is carried out that number should reach at least 342. The company has committed to spending at least 2.9 million euros on wages for the new workers over the two years following full employment. Spread across a hundred workers and two years, that comes to roughly 14,500 euros per worker a year.
Payment Comes in Five Installments, and Comes With Conditions
The incentive is not paid out in one go. It comes in five installments, from 2027 to 2031, and each payment depends on the company first proving it has met its contractual obligations on investment and employment.
The contract also states that for five years after the project is completed, the company may not let its workforce fall below the agreed level, nor reduce the value of assets acquired through the project. Both the direct investment and the number of new jobs reached must stay at the same location for at least five years after the investment is completed.
In short, the company’s obligations are:
- an investment of 77 million euros, with at least 25% from its own funds
- at least 100 new jobs by the end of 2030
- at least 2.9 million euros for wages in the two years after reaching full employment
- keeping both jobs and assets at the same location for five years
What Happened to the 2020 Contract
This is not the first state money Xingyu has received in Nis. Under a previous contract from 2020, it was granted a total of 16.4 million euros, and the company committed at the time to an investment of about 60 million euros and to 1,000 jobs by the end of 2025.
That contract was amended in 2024. The number of jobs the company had to create was lowered to 550, with the deadline pushed to this year, and the subsidy was cut to 12.3 million euros.
Comparing the two contracts puts the new one in context. The first called for 1,000 jobs for 16.4 million euros in incentives, then after four years was scaled back to 550 jobs for 12.3 million. The new contract asks for a hundred jobs for 8.2 million euros, with a commitment that total employment will not fall below 342.
The Serbian branch of the company was founded in 2019 and makes lighting equipment for motor vehicles. Its owner is Chinese company Changzhou Xingyu Automotive Lighting Systems, which runs six automotive lighting plants in China and one in Serbia.
The first installment of the new incentive is due in 2027, and before it is paid the company will have to show it has met its contractual obligations.
