ABS Minel to invest about EUR 3m in new technologies in 2010

(Nenad Popović)

Electric power engineering holding ABS Minel, which operates within international group ABS Holdings, plans to improve the quality of its products in the following period and focus on conquering Serbian market and the markets of the countries in the region. The company will invest between 2 and 3m EUR in development projects in 2010 - Nenad Popović, President of ABS Holdings, told eKapija.

- In this and next two or three years we will focus on increasing our market share. We are currently not thinking about either additional capitalization or acquisition of new companies. Our group still comprises all the companies of former Minel, so that we will concentrate on uniting that system because we want to become a strong strategic partner to companies such as EPS, Telekom, Elektromreže Srbije, NIS, that is, all companies that use our energy equipment. Once we finish the expansion in domestic market we will start thinking about additional capitalization and cooperation with strategic partners, from whom we constantly receive offers - said Popović.

He said in the interview that he gave during the Business Forum on Kopaonik that the time was not right for the changes in ownership structure because of the crisis since it was the time when companies were to try to consolidate their operations.

- The market will show in four or five years how regional companies should position and ABS Minel will follow those trends.

This year is more difficult than previous one - Government's measures are insufficient

- The business circumstances have never been more difficult because, in addition to the global economic crisis, Serbia is experiencing system problems in the economy whose roots should be sought in sanctions, wars and constant changing of authorities. These are the reasons for the fact that we do not have a strategy for long-term economic recovery. Another important factory that makes the operations difficult is the system of public procurements that has not been completely finished, so that it neither protects consumers nor takes care of domestic economy. I will explain that on the example of ABS Minel. We do not even have a theoretical chance to export our products to Croatian market because their economic environment is designed to protect domestic production. On the other hand, Croatian companies have no problem to do business in our country, and I will give only one example - company Rade Končar - said Popović.

He pointed out that it should not be forgotten that that competition was very strong and that Serbian companies were competing with the global manufacturers whose starting positions were much better.

- All these companies can take loans at significantly lower interest rates that range between 1 and 3% on annual basis. Unlike them, Serbian entrepreneurs pay the interest rate of 8 to 9%. Therefore, the problem does not lie in banks' liquidity since they have money but they can not lend it to the enterprises that do not have good guarantees, and that is the main problem. That is why the economy sector suggested that the guarantee fund should be significantly increased in order to be able to provide guarantees for small and mid-sized enterprises that can not obtain loans from commercial banks.

Members of ABS Holding have been developing, producing and delivering the most complex electric power engineering equipment for more than 50 years. They are introducing automated systems in various processes and suggest complex industrial solutions for electrical engineering, shipbuilding, as well as for oil, gas, metal and mining industries. This holding company is present in the markets of Russia, Europe, Asia and the Near East.

ABS Minel in Serbia comprises the following companies: ABS Minel Transformatori, ABS Minel FEPO, ABS Minel Trafo, ABS Minel Inženjering, ABS Minel Kontaktne mreže, ABS Minel Elektrooprema and ABS Minel Elektrogradnja. The holding company in Serbia has 1,100 employees.

T.S.

ABS Minel d.o.o. Beograd

Elektroprivreda Srbije ad Beograd

Telekom Srbija a.d. Beograd

EMS ad Beograd

NIS a.d. Novi Sad

ABS Minel Fepo a.d. Zrenjanin

Minel Trafo Mladenovac

ABS Minel Elektrogradnja a.d. Ripanj-Beograd

ABS Minel inženjering a.d. Ripanj

ABS Minel Kontaktne mreže a.d. Ripanj

Minel Transformatori doo Ripanj

ABS Minel Elektrooprema a.d. Ripanj

Končar grupa Zagreb

Končar- Električna vozila d.d.

Savez ekonomista Srbije Beograd

Nenad Popović

Business forum Kopaonik

Kopaonik business forum