Bivoda plant is the most attractive – Three offers for acquisition of Yumco plant

Polish Andropol, according to local media in the south of Serbia, delivered a letter to the Agency for Privatziation where it expressed its interest in the purchase of textile plant,Yumco, with the state-owned majority stake.

As the newspaper Vranjske report, three offers arrived for Yumco but the remaing two refer to Bivoda, owned by the Vranje-based company and which is located in Bujanovac municipality where mineral water is bottled and beverages are produced.

- Andropol is interested in Yumco thanks to the efforts of the Ministry of trade and company management. I would like to outline this fact because it is the company which was in the game but strike and some interest local groups which work directly for tycoons scared the Polish. Many do not find it convenient that Yumco works for the Army and police and would like to take over that business - Goran Djordjevic, GM at Yumco, said.

Management of Vranje-based textile industry has recently visited Poland and Andropol company. According to Djordjevic, “it is serious, big, textile industry which has already bought two companies similar to Yumco in the past few years”.

- In the companies which it acquired, Polish partner sold old machines and invested the funds into maintenance. They kept 1.200 people in confection while they rent real estate which they did not sell to strong companies where they provide job for its surplus manpower. It is an idea for Yumco as well. It is necessary to maintain primary, profitable production in departments of additional processing and confection and this is where 1300people is an optimal headcount. Other halls should be rented to companies which will hire surplus Yumco’s manpower where we will have multiple benefits for rent and new positions– this is the estimation of Vranje-based textile company management.

Since 2004, after debts conversion, Yumco’s majority stake is state-owned with some 70% of the company’s capital.