Magna International unit Magna Seating plans a car seat cover factory in northern Serbia, the country's investment promotion agency said.
The 3,200sq m (34,400sq ft) plant will employ 132 people initially but this will increase to 444 by 2015, Aleksandar Miloradovic, spokesman for Serbia Investment and Export Promotion Agency, told Bloomberg News.
Plant construction, to begin in the second quarter, is estimated to cost EUR2.86m ($3.75 million) as part of a total investment of EUR5.64m, he said.
The plant site is in Odzaci, 140km (90 miles) northwest of Belgrade, where local authorities will provide a 2.68 hectare (6.6 acre) plot as part of efforts to attract foreign direct investments, Miloradovic said.
The investor may also receive government incentives that range from EUR4,000 to EUR10,000 per job created, he said.