German supplier Continental has opened a EUR140m (US$166m) auto electronics factory in Novi Sad, in northern Serbia, the Serbian government said.

The manufacturing plant will employ around 500 people and is part of the Human Machine Interface (HMI) unit of Continental that is focusing on the production of car interiors, the government said in a statement cited by seenews.com.

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"Such German factories always bring great prosperity, higher salaries and secure jobs but also greater seriousness and responsibility," Serbian president Aleksandar Vucic said at the inauguration ceremony.

Continental opened a research and development (R&D) centre in Novi Sad in March 2018 and has hired about 600 engineers so far. The company operates a plant for pipes and pipe systems for vehicle powertrains in Subotica, in northern Serbia, seenews.com noted.

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