Pozega foundry starts production of composite brake shoes and ferodo-type brakes in May 2012 - Investment worth EUR 3.5 million

Pozega foundry, which produces grey and nodular iron castings, has announced that it will invest EUR 3.5 million in 2012 in the production of brake shoes and ferodo-like brakes of composite materials.

The Development Fund will contribute EUR 1.5 million, while EUR 2 million will be provided by the foundry's owners - Farmakom MB Sabac and Serbian Railways, proportionally to their stakes in this Pozega-based producer of brake shoes for freight and passenger railway cars, locomotives and trams.

- Trial production is due to kick off in May 2012. The investment will be implemented in cooperation with Germany's Bremskerl, the supplier of primary raw materials – people at Pozega foundry announced.

New range of composite products, along with a production boost at the existing plant, will also enable the employment of 50 new workers at the foundry.

Pozega foundry delivers brake shoes for railway vehicles to all republics of former Yugoslavia, as well as to the railway companies of Greece, Bulgaria, Austria and Czech Republic. A total of EUR 4 million were invested in that company last year to enhance the quality of products and boost the production, with the aim of offering Pozega's products to the railways of Russia, Kazakhstan and Belarus in 2012.

- We expect to receive Russia's GOST-R certificate until the end of February 2012, which will enable us to export our products to Russia and former Soviet Union countries – Pozega foundry announced.