Industry

The industrial and mining sector of the Republic of Serbia encompass ore mining, stone mining, the processing industry, the electric power industry and production and distribution of petroleum products and water.

The break –up in total industrial production in these areas are as follows:

• processing industry – 75.18%
• production and distribution of electric power, petroleum products and water – 19.69%
• more and stone mining – 5.13%.

The processing industry includes 23 sub-sectors. Participation of individual sub-sectors in total industrial production are as follows:

• food and beverages – 19.97%
• tobacco – 1.61%
• textiles – 4.11%
• garment industry and fur production – 3.00%
• tanning – 1,23%
• timber and wood industry, excluding furniture – 0.84%
• pulp and paper – 2.68%
• printing and reproduction – 0.97%
• production of coke and oil derivatives – 1.14%
• chemicals – 9.50%
• plastics and rubber – 3.63%
• non-metal minerals – 5.49%
• basic metals – 5.74%
• metal-manufacturing industry, excluding machines – 3.20%
• production of machines and devices, excluding electrical devices – 3.11%
• production of office supplies and equipment – 2.41%
• production of electrical devices – 2.41%
• production of radio, TV and communications equipment – 0.31%
• production of precision and optical instruments – 0.22%
• motor industry - 3.10%
• production of other means of transportation – 0.76%
• furniture – 0.02%
• recycling – 011%.

There are 696,540 workers employed in industrial and mining companies, comprising 52% of the total active labour force in the Republic of Serbia. Small enterprises employ 82,273 workers, 146,972 in medium-size and 457,286 in large enterprises.

The Law on Privatization has set down conditions for economic reforms envisioning optimal development of the industrial sector.

Large industrial enterprises with financial difficulties are obliged to undertake a programme of restructuring (restructuring of ownership, production processes, technology, organisation and personnel). Foreign partners who are prepared to invest in the Serbian economy have expressed their interest in many of these companies.

The reforms that are in currently underway will improve macroeconomic conditions and provide additional sources of financing, such as direct foreign investments through privatization, credits approved by the International Monetary Fund, funds approved at the donors’ conference in Brussels, credits from the World Bank etc.

All policy measures that have been undertaken so far in order to repay current outstanding debts, providing means and energy products, and especially in the area of privatization and further development of the reform agenda will all contribute to the recovery of Serbia’s industrial sector, and facilitate its adaptation to evolving economic conditions.