The final agreement on the investment in Gorenje production facilities in Valjevo, Stara Pazova, and Zaječar is to be signed within four months, but the document needs to be approved by the Serbian government and Gorenje's supervisors, the company wrote on the website of the Ljubljana Stock Exchange.

In Stara Pazova, Gorenje produces water heaters, in Valjevo refrigerators and freezers, while the company makes bathroom equipment and assembles washing machines and dryers in Zaječar.

So far, the group has invested around EUR 100m in Serbia.

With the new investment, the company plans to optimise and increase the efficiency of its facilities in Valjevo and Stara Pazova, and expand and modernise the plant in Zaječar, where Gorenje is to produce appliances developed in strategic partnership with Panasonic.

The new plant in Zaječar, which is expected to have an annual output of over 400,000 washing machines and dryers, mostly meant for export, is to be operational in 2015.