Afarak takes over majority of Magnohrom for EUR 1 million – Finnish group announces investments in upgrade of technology and equipment

The Finnish company Afarak has announced on its website that it has signed a sales and purchase agreement for the shares of the biggest and most important part of Magnohrom Kraljevo.

As said, following the completion of the 2-year sintered magnesite test project at the Magnohrom plant, Afarak has acquired the operation and the mining rights for various magnesite mines with confirmed reserves of over 4 million tons of ore.

At the price of EUR 1 million, the company should become the new owner of the part consisting of the Refractory Materials Plant, Sumadija and Magnezit mines with facilities for exploitation and separation of refractory material ores, the Management Building in Kraljevo, as well as the land in the territory of Kraljevo, Cajetina and Gornji Milanovac.

Guy Konsbruck, CEO of Afarak said that the acquisition of Magnohrom allowed Afarak to supply the growing refractory material industry and added that Afarak would be investing in upgrading the technology and equipment at the mines and processing units.

– It is of great importance that a reliable strategic partner will arrive to the former industrial giant and revive the production and re-employ a large number of our fellow citizens. Of course, one shouldn’t expect Magnohrom to employ around 5,000 people as it used to, but it is realistic for it to function on healthy economic foundations – Mayor of Kraljevo Predrag Terzic told Novosti.

In mid-March, there were no interested purchasers at the auction for this part of Magnohrom at the price of RSD 275 million.

Two parts of Magnohrom Kraljevo were sold at this public auction at the time.

Nelt bought the Electrothermal Product Plant (FETP) in Kraljevo, listed as lot 2, at the price of RSD 98 million.

The SVO-TVO plant was bought by Malbex Wbi Belgrade for RSD 13.5 million.

Magnohrom d.o.o. Kraljevo

Afarak d.o.o. Beograd

Nelt Co d.o.o Beograd

Malbex Wbi d.o.o. Beograd

Magnohrom

Afarak

Nelt Co

Malbex Wbi

sale of Magnohrom

privatization of Magnohrom

purchase of Magnohrom

Magnohrom bankruptcy

sale of Magnohrom property

Refractory Material Plant Kraljevo

FVM Kraljevo

Electrothermal Product Plant Kraljevo

FETP Kraljevo

SVO TVO plant

Fabrika smolom i terom vezanih opeka i masa

Sumadija mine

Magnezit mine

refractory materials

sintered magnesite

magnesite

magnesite mine

exploitation of refractory materials ore

separation o refractory materials ore

Guy Konsbruck