South Korean Yura becomes new owner of Zastava Elektro in mid-March - projected investments of 6.8m EUR

The new procedure for privatization of Zastava Elektro from Rača Kragujevačka starts today (March 1st, 2010) with the public advertising of resale of that company, of which previous privatization was canceled last year, after the workers protested for months.

As newspaper Danas finds out, ahe auction sale of Zastava Elektro will be organized on March 15th. On that occasion, if judging by the latest information from the Ministry of Economy and the Town Hall of Rača, the company for production of automotive electric installations in that town in Sumadija will be bought by South Korean Yura - a corporation from Seoul.

Danas learns that Yura corporation, which supplies South Korean companies Kia Hyundai and Daewu with electric installations, will pay 2.8m EUR for 89% of Zastava Elektro's capital, as well as that it will later invest about 4m EUR in its new company in Rača Kragujevačka, primarily in the procurement of modern production equipment. The company from South Korea will first buy the land where Zastava Elektro's facilities and halls are located and then equip these facilities with brand new equipment, that is, state-of-the-arts production lines for cutting and laying electric conductors.

The company from South Korea plans to employ about 1,000 workers in its new company in Rača. That is why the representatives of Yura corporation, who were staying in Rača over the last few days, asked about qualification and age structure of both employed and unemployed people in the registry of the National Employment Agency, as well as about the situation with manpower in neighboring towns in Sumadija and the road infrastructure in that part of the region. On the other hand, Zastava Elektro's workers who wish to leave the company will be able to do that on the basis of the social program, which, among the rest, anticipates severance pays of 300 EUR per year of work and other options for the voluntary leave from the factory.

Zastava Elektro Rača

Ministarstvo privrede Republike Srbije

Hyundai Engineering Co Ltd (HEC)

Zastave Elektro

Yura

Ministry of Economy

Kia

Hyundai

Daewu

Town Hall of Rača Kragujevačka

Seoul