The document was signed by the country’s Minister of Economy Željko Sertić and a company representative, Daniel Nottbrock. The official ceremony was also attended by Serbian Prime Minister Aleksandar Vučić and Clemens Tönnies, the German company’s owner.
Vučić said the designed farms will have as many as three million pigs. The locations for the five farms have been agreed by the two parties, while five other locations are currently being negotiated with representatives of the German company, according to the top government official.
The Prime Minister said the investment was expected to lead to a significant increase in Serbia’s exports of agricultural products, as well as a significant reduction in unemployment in the regions where the five farms will be located.
The firm’s owner said that the conditions for investment in Serbia were very convenient, and that Tönnies could locate a total of 20 farms in Serbia.
The expected schedule for completion was not disclosed by the parties.
"[Tönnies] wants to strengthen its presence in the markets of south-east Europe and, together with German partners, have long-term investments in Serbia, amounting to approximately €420m," the Serbian government said in a statement.
Set up in 1971, Tönnies claims to be a leading global multi-tier food industry business, with activities in the meat, convenience, ingredients and logistics sectors. Its core activities are centred on the slaughtering, butchering and processing of pigs, sows and beef cattle. Tönnies has a wide range of pre-packed fresh meat, boiled ham, cured pork products, and sausages in its product portfolio, according to data from the German firm.
Based in Rheda-Wiedenbrück, in Germany’s North Rhine-Westphalia state, Tönnies is operated by an aggregate workforce of about 8,000 employees at seven German and one Danish production facilities. Export sales represent about 50% of the firm’s total output.