DINKIĆ: South Korean Yura is coming to Serbia

(Mlađan Dinkić)

The Minister of Economy of Serbia, Mlađan Dinkić, said today (February 16, 2010) that South Korean Yura that produced car parts should take over factory Zastava Elektro from Rača prior to end of March.

Dinkić said to the press in Kragujevac that Yura, the supplier of South Korean automobile manufacturers Kia, Daewoo and Hyundai, wanted to start production in Serbia in June.

- Yura is interested in investing in production of automobile cables and the whole production would be exported. That South Korean company, which has the same product portfolio as Zastava Elektro, plans to employ 1,000 workers in the first year - said Dinkić.

- Šumadija has become attractive for investors upon Fiat's arrival in Kragujevac - said Dinkić who paid a visit to Kragujevac in company with the delegation of the International Monetary Fund (IMF).

It is stated in the announcement by the Ministry of Economy that Dinkić said during his visit to Zastava Elektro in Rača that the invitation for sale of the whole property of that factory should be announced prior to March 1st and closed prior to March 15th.

- Until then, restructuring program should be made, banks should be contacted and resolving of the issue of commercial debts should start - he pointed out and added that the value of Zastava Elektro's property was estimated at about 2.8m EUR.

Dinkić said that, in accordance with the promise he had personally given to Zastava Elektro's workers who had been on strike due to bad results of former management, the Ministry of Economy had been seeking strategic partners for that factory over the previous six months.

- The representatives of the South Korean company visited Serbia several times and saw successful examples of car parts production in Leoni in Prokuplje and German Draxlmaier Automotive - said Dinkić.

Dinkić also said that the investors from South Korea had been on several locations searching for the best site for production, and that they had given the priority to Rača due to vicinity of the highway and good conditions in Zastava Elektro.

The Minister of Economy, Mlađan Dinkić, said that the workers who decided to leave Zastava Elektro would be offered the social program worth 300 EUR per year of work.

Zastava Elektro has 280 workers at the moment.