Torino, Italy-based Dytech is a lubricants and specialty fluids producer that is a supplier for European automaker Fiat.

The blending plant project has been closely outlined to the Serbian authorities, though no official agreement has been signed yet, Dytech told Lube Report last week, declining to provide further details.

According to the plan, the construction of the plant should begin in September 2010, while the start of production is due late next summer, Milos Simonovic, mayor of Nis, recently told Serbian news agency B92. Dytech plans to hire about 400 workers for running the blending plant, and to export the plants entire production, B92 reported.

The site is on 2.5 hectares (6.2 acres) in Nis industrial zone Donje Medjurovo, according to the news agency. The municipality leased the land to Dytech without any compensation, based on a new planning and construction law, B92s report noted.

Serbian government regulations envisage leasing land for zero compensation to attract more foreign investors, to recover the the countrys industrial output affected by the 1990s civil wars and subsequent international sanctions, and to reduce unemployment.

Serbia aims to attract up to $3 billion worth of foreign direct investments every year, Vesna Arsic, state secretary at the ministry of economy and regional development, told the Financial Times July 7.