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Regional Chamber of Commerce and Industry Leskovac

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Wednesday, 03 October 2007

The foundation of economic development and economic potential of the Region on the area for responsibility of Chamber of Leskovac is made of existing companies with different activities, with significant area of productive agricultural land, forests, mineral raw materials, qualified labor.

Moderate-continental climate and fertile grounds are representing favorable conditions for the development of agriculture and food production.The wide surroundings of river Morava is made into a great vegetable-grain region, well known in production of pepper, tomato, potato and other vegetable cultures, while in Vranje valley besides fruits and vegetables production, mostly tobacco is cultivated.

The development of primary production is followed by significant processing facilities in the field of agricultural industry, Companies "Porečje" from Vučje, "Delišes" from Vladičin Han and "Mesokombinat" from Leskovac, became the synonym of this area, in production of jams, fruit juices, stewed fruit, brandy, sour program, meat and meat products. It is necessary to mention the fact that the well known “Leskovac grill meat”, became the agricultural product with recognizable name of geographical origin.The faster development of food industry is realized by connecting and manufacturing cooperation with individual agricultural producers.

Tradition in the production of textile dates from year 1886 and it was a base for the foundation of the series of textile factories. In the long period, the textile industry was the most important economy branch in this Region, leading with "Leteks", factory for production of fabrics, and later the first in this area became HK "Jumko" from Vranje, with modern technology and organization, and it was listed in the top world manufacturers of fabrics and ready made clothes. Chemical industry in this region represents young industry regarding to other branches, but after it accomplished economic results, it became very important. It is dominant by its production volume, improvement of economic results in the scope of the entire economy and similar. Educated experts in this branch (AD "Zdravlje", AD "Nevena", DOO "DCP Hemigal") are working on the development of new technologies and its importance is growing with the introducing of new products. The proof that this Region has capacities and developed wood processing industry, are the products of HK "Simpo" from Vranje, which by its share and quality are famous at the world market.

The further growing and development of this branch is expected, since it is recently based more on private companies with modern technology and new innovative approach. The privatization of socially owned enterprises until the September 2007 was finished in 73 enterprises. Tender privatization was successfully carried out in two enterprises, "Zdravlje" from Leskovac and DIV from "Vranje", while the other companies were privatized by public auction.

Privatization process is still expecting in 77 companies. It is announced that DP “Jugekspres” will be privatized by tender procedure and other firms will be privatized by public auction. 11 enterprises, mostly in wood processing industry, ready made clothes, textile industry, shoes making, pharmacy industry and tobacco processing, had been bought by foreign investors. Furthermore, it is important to mention that a certain number of enterprises are rented by Grecian companies in Leskovac Municipality while on the territory of Vranje Municipality; in progress is realization of investments in the area of textile industry by Grecian company with central office in London.

The most important partners in cross border trade are: Italy, Germany, Bosnia and Herzegovina, Greece, Macedonia...In foreign trade exchange in 2003 year, there was realized turnover of about 215 millions of dollars. Wood processing industry and textile leather industry have the biggest share in the export. Existing foreign trade exchange does not reveal the possibilities of the economy of this Region. More intensive foreign trade exchange is expected with introducing the legislative regulations according to European standards with the change of economy structure, privatization and ongoing transition.

Based on its advantageous geographic-communications position, the intensification of links with the countries of Central and Western Europe and the countries of Southern and Eastern Europe, and promoting and developing transit and mediator functions between Europe and Asia, South Serbia as well as Serbia in general has the possibility of rationally and efficiently developing its spatial - functional position. Serbia's potentials for the development of tourism are diversified and noteworthy, and only a small portion has been activated.The most important requirement is to make South Serbia an attractive investment option and to encourage foreign investment according to nature beauty and comparative advantages in tourist industry.