If production is relocated, the company will secure new product lines in

order to preserve jobs in Slovenia, according to the agreement which was

confirmed by Gorenje's supervisory board on Thursday.

In exchange,

the two representative unions in the company will cooperate with the

management in any relocation decisions and $refrain from any action or

decisions running contrary to the agreement.$

The commitments

will apply under the condition that the business conditions do not

deteriorate substantially, the company said in a statement.

Gorenje

has been carrying out an $optimisation of production locations$

in a bid to cut costs. It has significantly expanded its facilities in

Serbia and in the Czech Republic.

In early March it announced it was

closing a stovetop plant in Finland, which it obtained as part of its

acquisition of Sweden's Asko in 2010, and moving production to its Czech

plant Mora Moravia.

In Serbia it has rapidly expanding production

locations in Valjevo, Zaječar and Stara Pazova.

The signing of the

agreement with the unions comes after media reports suggested growing

unease among workers in its base in Velenje, who were said to be afraid of

their jobs due to relocation plans.

The supervisory board also

confirmed today the arrival of Peter Groznik as new chief financial

officer.

Groznik, a lecturer at the Ljubljana Faculty of Economics,

has been doing financial consultancy for Gorenje since late 2010.

He

succeeds Marko Mrzel, who will take responsibility for the same of small

and big household appliances.