Serbian cars for Congo - Kraljevo-based factory's export worth EUR 40m

Railway car factory Kraljevo should produce over 400 cars worth about 40 million euros for Congo within next two years. The National Investment Promotion Agency in Congo has sent a formal invitation from the Congo Ministry of Infrastructure and Transport to the management of the Kraljevo-based factory to come to Kinshasa in early September and sign the contract.

Actually, the company from Kraljevo will sign two contracts - one with the national railway company of the Democratic Republic of Congo (ONATRA) on production of 120 cars worth EUR 10.5m, and the other with state company SNC on production of 290 cars worth about 30 million euros. The railway car factory won the first job on a tender few years ago and even signed the contract in 2006, but the Government of Congo did not have money to finance that project. The situation has changed to the satisfaction of both sides, says Denis Chilumba Buzangu, regional representative for the Balkan countries.

- Congo is now a stable country and our financial capabilities have been improved. That is why we will sign an annex to the old contract and make a new one for another job. Serbia has a high-quality technology that Congo needs - Denis Chilumba said in good Serbian.

- Having in mind difficult financial situation of the railway car factory, we have agreed on successive payments and delivery of cars - says Bosko Slavkovic, the Director of Railway car factory Kraljevo.

- We do not have sufficient working capital so that the payments will be made in advance, and we will deliver as many cars as they pay for - Slavkovic specifies.

The Director of the factory also announces that the first cars will be delivered in January and that the deadline for realization of both contracts is the end of 2012. Since the factory is currently repairing cars for Serbian Railways and the contract with Slovaks on production of 50 cars will, most probably, be expanded, it can be expected that new production workers be hired in early 2011 to make cars for Congo.

Such unfolding of events creates hope for survival of the biggest company in Kraljevo at the moment. The factory now has about 870 workers. They have been receiving salaries on regular basis since the termination of the privatization contract in February, but they have just received the February salary. For those who worked at the time, average salary amounts to 25,000 dinars.

Bosko Slavkovic also says that early this week the railway car factory renewed three European railway vehicle production certificates that previously expired.