Page 130 - SE Outlook Regions 2023

The cement industry, which depends on high-calorie coal from Russia
and Ukraine, has also been affected by the global situation. This came
after 2021 was very successful for the cement industry of Serbia. 2.6mn
tonnes of cement were produced and sold, which is an increase of
more than 10% compared to the previous year.

Despite sanctions, the European Commission said on September 20
that it has approved the acquisition of Serbian petrochemical plant
HIP-Petrohemija LLC Pancevo (HIPP) by Serbian Oil Industry (NIS),
which is majority owned by Russia’s Gazprom.

Commenting on the potential to develop the country’s mining industry,
Serbia’s then minister of mining and energy Zorana Mihajlovic said in
November 2021 that Serbia has proven mineral raw materials worth
€250bn. In particular, she noted the large quantities of lithium, copper,
gold and antimony that are critical for the energy transition and the
green agenda.

In August, an official from the Geological Institute of Serbia commented
that Serbia has gold ore deposits of about 600 tonnes.

Ahead of the April general and presidential elections, Serbia cancelled
the permits for Rio Tinto’s planned lithium mine in Serbia, following
mass environmental protests.

Demand for lithium is growing, as it is used in batteries for electric
vehicles (EVs) as well as smartphones and other electronic products.
Rio Tinto previously announced that the Jadar project would enable it to
become Europe’s biggest supplier of lithium for at least 15 years.

There was speculation at the time that the project might be revived
following the elections, but top Serbian officials have so far denied this.
President Aleksandar Vucic has spoken of his deep regret about the
cancellation of the project.

In manufacturing, the car parts sector has been going strong, with a
series of new investments announced during the year. Recent
investments include several by German auto parts producers such as
Koepfer’s new factory in Smederevo and the announcements of ZF
Friedrichshafen’s second factory in Pancevo and Tristone Flowtech
Holding’s car parts factory in Paraćin.

Belgrade encourages auto parts manufacturers and other
export-oriented manufacturers with subsidies and other incentives. The
country is also a popular destination given its proximity to Central
Europe and relatively low costs.

Serbia is also getting involved in the electrification of the car industry.
Representatives of the Serbian government and automaker Stellantis

130 SE Outlook 2023 www.intellinews.com