Italian hosiery, lingerie and activewear manufacturer Pompea SpA is to expand its production in Serbia as part of a EUR3m (US$4m) investment that is being backed by the Serbian government.

An estimated 300 jobs will be created, split between the towns of Brus and Zrenjanin, where a new dye factory is being opened. Pompea already operates a factory in Brus, which it bought nine years ago for EUR25m, while the Zrenjanin facility is a greenfield investment.

Earlier this month it was revealed that Italian fashion firm Benetton is to take over the Nitex facility in the southern Serbian city of Nis. Benetton plans to hire 2,700 workers over the next four years, with the government subsidising each new job to the tune of EUR9,000.