Russia's Krasny Treugolnik buys Vulkan from Nis for EUR 3.5 million

Director of the Vulkan company, Dusan Marsenic, today signed an agreement with the CEO of Russia's Krasny Treugolnik, Evgeny Sinelnyikov, to sell that Nis-based company to the Russian partner for EUR 3.5 million.

The Russian partner will keep 280 of Vulkan's 400 workers and invest EUR 1 million in the modernization of the rubber factory in Nis, whereas the rest of employees will be taken care of with a severance program, it was said at the agreement signing ceremony in the City Hall.

Mr. Sinelnyikov said that their goal was to boost production to 8,000 tonnes of rubber products a year and achieve a turnover of between 25 and 30 million euros in three years.

- If we start off well, we can later double our production target - Sinelnyikov said and announced that based on their experience, the investment in future stages could be increased to 3-5 million euros.

Vulkan will continue to produce large conveyor belts that made that factory famous in the previous period, and the new owner has already secured exports to former Soviet republics.

Marsenic noted that it had taken two and a half years to finish the restructuring process at Vulkan, adding that thanks to the Ministry of Finance and Economy, the situation in that factory was much better.

As he pointed out, production has never been halted, but the factory was operating at a reduced capacity for some time.

Nis-based Vulkan was privatized in early 2007, when Bulgaria's Mina became its new owner. The privatization agreement was terminated in February 2010.