IFC €20 Million Loan to Help Revive Serbia’s Car Industry, Boost Economy

PMC Automotive Serbia is a joint venture between CLN Group and PROMA Group, two Italian automotive suppliers.

The PMC factory will supply parts to Fiat’s plant in Kragujevac. The Fiat plant will manufacture the new Fiat L0, a subcompact car with improved fuel efficiency. The current production capacity of the Fiat plant, 20,000 cars per year, is expected to grow to 140,000 cars per year in 2013, and possibly more than double that amount by 2015.

The PMC factory, located in a supplier park less than a kilometer from Fiat’s plant, is expected to generate 370 jobs. The total cost of the project is estimated at €37 million.

Serbia became a member of IFC in 2001. To date, IFC's investment portfolio in Serbia stands at $698 million (€533 million), including financing mobilized from other partners. Through its Advisory Services, IFC aims to improve the investment climate, introduce international standards, strengthen corporate governance, and attract private sector participation in development of infrastructure projects.