Belgrade, Oct. 2, 2002 - Serbian Minister of Economy and Privatisation Aleksandar Vlahovic said today at a press conference that the German company Henkel bought off 70 percent of the socially-owned capital of the Krusevac-based company Merima for € 14.4 million, while the Slovenian Impol purchased the Sevojno-based Seval aluminium rolling mill for $6.5 million, which marks the successful continuation of the privatization process in Serbia.
Speaking on the progress of privatization tenders in Serbia, Vlahovic said that investment in the Merima company from Krusevac will total € 43.3 million. Henkel agreed to the social programme, which envisages no more dismissals of employees over the next five years, and also confirmed setting aside €0. 5 million for the training and re-training programme for Merima workers.
Slovenian Impol accepted the social programme, which preserves workers' rights, with the obligation to provide eight apartments for employees. The Slovenians will invest $14.6 million in the Seval aluminium mill.
The Serbian Ministry of Economy and Privatisation is "very satisfied with the signed contracts," especially in view of the guarantees given that "continuity of production in both companies will be preserved," Vlahovic said.
The Minister informed the press of the privatization of five sugar plants, three of which (Jugozapadna Backa from Bac, Donji Srem from Pecinci and Jedinstvo from Kovacica) would be owned by the MK Commerce company from Novi Sad, whereas Hellenic Sugar Industries is planning to buy off the sugar plants in Zabalj and Crvenka.
"These two companies were the only ones to submit applications when the sugar plants were put out to tender and we expect to sign the contracts with them within one month," Vlahovic said.
The Jugozapadna Backa sugar plant is to be bought off for three euros, but MK Commerce has pledged itself to investing € 5 million and accepted the € 2.1 million social programme. Commitments at the sugar plant in the last year totalled € 4.99 million and the buyer is obliged to settle this debt.
MK Commerce also offered three euros for the Pecinci-based sugar plant Donji Srem. However, MK Commerce will be obliged to invest € 7 million in the plant as well as to adopt the € 2.116 million social programme. The total obligation of the future owner will be € 13.939 million.
MK Commerce was the only company to apply for the purchase of the Jedinstvo sugar plant from Kovacica, offering three euros with the commitment to invest € 5.372 million and to carry out the social programme costing € 2.73 million. Last year's liabilities at this sugar plant total € 8.066 million. The buyer will take care of this debt.
Hellenic Sugar offered € 1.1 million for the sugar plant in Zabalj. Commitments by the Greek purchaser include € 7.98 million worth of investment and adoption of the € 1.583 million social programme. The liabilities of the Zabalj sugar plant amount to € 14 million and will also be covered by the purchaser.
Hellenic Sugar offered € 2 million for the Crvenka-based sugar plant, committing itself to invest € 7.83 million in the plant, which is the biggest of the five. The social programme of € 2.196 million will be carried out if the sale succeeds. The buyer will also assume responsibility for the liabilities of this plant, which amount to € 21.817 million.
By selling these five sugar plants, the Serbian budget will receive € 3.1 million plus nine euros from MK Commerce. However, the crucial goal of privatisation is not to swell the budget, but to attract investment, said Vlahovic.
Vlahovic also said that Farmaco from Iceland had also put in a bid for the privatization of the Zdravlje Company from Leskovac, whilst Slovenian Krka from Novo Mesto is interested in buying Hemofarm from Vrsac.
