Prequalifying tender for IMK “14.oktobar” in January, 2009 – privatization by the model of Kragujevac based factory, “Zastava”

Industry of machines and components, known as IMK “14.oktobar” will be privatized in 2009 by the model similar to the one applied on Kragujevac based “Zastava” factory, it was announced by the State secretary for commerce and privatization, Nebojsa Ciric.

State secretary stated after the meeting with the management and the union of Krusevac based factory, and business individuals, that in mid January, there would be published a prequalifying tender for election of strategic partner of IMK “14.oktobar”.

- We are going to pay all debts of the company and help it develop better business in 2009, and we want that strategic partner should become majority owner through investing in the company, said Ciric to the press.

According to his words, the primary goal of this tender is to see who and at what extent is interested to invest in IMK “14.oktobar” , together with Serbian Government.

- The State is not expecting to get any money, but it is interested in investments of several tenths of million euros by the strategic partner, as well as continuation of business, increase of production, better salaries and new working positions.

The Conclusion by the Government of Serbia, made on December, 19th, it has been decided to make the state owner of 80% of the company’s capital in the name of the debt, IMK has to the state, in the amount of 12 million euros.

Also, during January, 2009, the state is planning to do a linkage of the working era in the company for the period from June of 2006.