Italian company "TeknoHose" launched Monday production in the plant located in Technological Industrial Development Zone (TDIZ) Skopje 1. The initial investment is EUR 5 million and creation of 50 jobs, whereas the realization of a new EUR 10 million investment will start in March next year, increasing the number of employees up to 200.

Prime Minister Nikola Gruevski and Government ministers, company CEO Antonio Vitillo and Italian Ambassador to Macedonia, Fabio Cristiani officially put the plant into use.

"Despite the effects of the global economic crisis on the investment, which was initially announced in 2008, the result is here, the new plant of Italian investor 'TeknoHose'", said PM Gruevski at the ceremony.

According to him, the investment was another confirmation that the Government's economic policies yielded the expected results.

"Only the best and the most resourceful manage to exist in these years of global economic crisis and European debt crisis by allocating their resources, reinvesting their capital and enlarging their output. 'TeknoHose' managed to do this in these difficult times", stressed Gruevski.

Referring to the latest World Bank Doing Business report, which puts Macedonia as the regional leader in doing business, as well as confirmation of the credit rating by Fitch agency, PM Gruevski said things moved in the right direction.

"This is a clear signal for all future investors that Macedonia is a stable country with quality economic policies. He expressed belief that such signals would reach many companies, with investors following the footsteps of companies already investing in Macedonia", he added.

The plant will produce high pressure reinforced rubber hoses, used in construction, automotive industry etc.

Company CEO Vitillo stressed the Government had provided support during the entire course of investment implementation, adding they chose Macedonia due to the excellent geographic position, competitive costs and favorable tax system.

Italian Ambassador Cristiani emphasized that his country's investments in Macedonia were modest, but expressed optimism they would increase in the upcoming period.

Company "TeknoHose", registered in Macedonia under the name "Vitek Macedonia", is a member of Italy's Vitillo Group. It purchased an existing facility in TIDZ Skopje 1, which has been completely reconstructed and adapted.

The company plans to start the construction of a second facility in 2013 for production of hydraulic couplings for reinforced hoses.