Swedish-Lithuanian consortium announced investment of 40m EUR in BIP - new brewery in Krnjača prior to year 2011

Representatives of the majority owner of the Belgrade Beer Industry (BIP) – the consortium made of "Alita" and ”United Nordic Beverages – UNB” – announced yesterday (October 23, 2007) that they would invest at least 40m EUR in that company within the next 3-5 years.

General Manager of UNB, Tavi Ejnaste, annnounced that the money would mainly be invested in the sales department, marketing and new brewery, which should be built in Krnjača prior to year 2011.

Ejnaste pointed out to the press that the existing factory of BIP was of good quality, but that it was not efficient enough, so that, in addition to BIP’s juice factory in Krnjača, the new brewer would be built.

According to his words, another reason for construction of new brewery, which will have larger capacities than the existing one, is that, according to the long-term plans of City of Belgrade, there should be no industrial zone on the current location of BIP brewery.

Ejnaste reminded that the consortium that had bought BIP had obligation to produce beer within the following three years, so that the old factory will not be closed until the new one is built, but there will be no investments in its development and the old brewer will be sold after the new one is finished. He pointed out that BIP was the owner of the building of the brewery and that it had right to use the land, pointing out that the problem of returning of property to former owners should be solved exclusively between them and the state.

Ejnaste has reminded that BIP has about 1,000 employes, but, for the sake of growth of factory's profitability, social program will be made and one part of the workers will be offered to leave factory voluntarily and get severance pay in amount of 250 EUR per year of work.