"Kluz" for sale at new price in September

Public companies "Kluz-Kozara" and "Kluz-Trgovačka mreža" will be offered for sale at new price at auction in September.

According to the agreement that has been made between the Ministry of Economy and representatives of these companies, the new owner will not be able to change their field of work within the next five years.

The representatives of Independent trade union of leather and footwear and directors of the companies said that that agreement had anticipated re-appraisal of the capital, while the offered price should not include the debts of "Kluz" to Beobanka and other creditors. The period during which the new owner must keep the companies in the same business has been extended from two to five years.

The President of Independent trade unions of "Kluz Kozara", Dušan Radović, said that the new auction would be held at the end of September, and he specified that the debts to creditors would be paid from the final price, while the new owner would keep the obligation to pay late salaries and allowances for Pension and Disability Insurance Fund.

Radović pointed out that the changed terms were the reason for optimism as far as privatization of "Kluz" is concerned because they stipulate that the new owner must be in the same business, that it can not change the purpose of the companies for the next five years, or dismiss workers within the next two years.

The interest in "Kluz" has been expressed by Turkish company "Čeliktaš", which has already specified on several occasions, in the letters of intent, that it is interested in moving part of production to Serbia and introducing new production lines in order to increase production share in Serbia and gain easier access to the market of Russia.

Radović says that "Čeliktaš" very clearly presents its plans, one of which is the growth of monthly production to 1.3m EUR, as well as employment of up to 1,050 people, which means that about 800 people would get jobs.

- It is very serious company with clearly defined aim of conquering Russian market - said Radović and explained that "Čeliktaš" said that there was enough work for the next three of four years.

"Kluz" registered 36.7m RSD worth of incomes in 2008, while the expenses amounted to 152.3m RSD.