Zastava vozila to set up joint venture with JAC

(Photo: zastava-kamioni.co.rs)

Yesterday, the Zastava vozila group asked from the Agency for Privatization approval that Zastava kamioni (Zastava trucks) and Chinese company JAC set up a joint venture headquartered in Serbia. Namely, Kragujevac-based company and its subsidiaries are undergoing restructuring process and they cannot make a single decision without the consent of the government.

The Chinese-Serbian company for production of freight and all-terrain vehicles will be called, Danas reports, Zastava JAC. The assembling of light Chinese trucks N75 in Zastava JAC should start eearly next quarter, more precisely October 3 when they are celebrating the day of the plant.

Let us remind ourselves of the memorandum on cooperation which the Group Zastava vozila and JAC signed in March this year and which implies three stages in development of mutual business.

These days, Zastava kamioni received a promise from the Ministry of Economy that the government will support Kragujevac-based plant in the financial sense until the beginning of assembling of Chinese vehicles in Sumadija. According to the announcements of the authorities, as Zastava kamioni were informed, the support will be enabled after July 20 when rebalance of the republic budget is planned.

The financial-business situation in Zastava kamioni is still featured with financial difficulties because the plant has not sold a single vehicle as of the beginning of the year while governmental subsidiaries were halted both for Zastava kamioni and other companies undergoing restructuring process since August last year.