Priboj giant to escape bankruptcy – FAB to become state-owned company and enter arms industry system

Fabrika Automobila Priboj (FAP) will not go into bankruptcy proceedings and will become a state-owned company instead, most probably within the arms industry system. A hearing in line with the Pre-Packaged Reorganization Plan (PPRP) has been scheduled for November 23, preceding which, as General Manager Ranko Vukovic says, the Government of Serbia reached the decision to turn the FAP debt towards state creditors into the capital of the state, which will own 94.5% of the company.

– It is certain that we will be out of the PPRP in a few days, following which we will turn to more intense negotiations about FAP's inclusion in Serbia's arms industry. So far, there have been talks on the matter with the Ministries of Defense and Finance, which have not yet been realized due to the PPRP. We have been told that the Serbian Armed Forces need our chassis for army trucks – Vukovic says.

Following a turbulent and uncertain year as a result of huge debts, lack of work and employee dissatisfaction over unpaid salaries and failure to bridge service periods, new jobs promising a recovery of the former Yugoslav car industry giant are in sight.

– The preparation for the production of 30 trucks is in progress. They will be exported to the UAE through a local purchaser. We have paid for 30 motors to Mercedes and we are expecting the shipment to be made soon. These will be mounted in trucks ordered by another local purchaser – Vukovic notes.

He adds that a lucrative job with Ghana lies ahead, i.e. with a company dealing in ore exploitation.

– We have sent an offer and we expect an answer to arrive from Ghana. We have recently hosted delegations of businessmen from Russia and Algiers, with whom we are also negotiating. We expect an answer from Egypt about the production of chassis for their armed vehicles to arrive in late 2016 or early 2017. We hope that new jobs with the Serbian Armed Forces will be contracted soon – Vukovic says.

FAP Korporacija a.d. Priboj

Vlada Republike Srbije

Ministarstvo odbrane Republike Srbije

Ministarstvo finansija Republike Srbije

Vojska Srbije

FAP Priboj

Mercedes

FAP Priboj bankruptcy

arms industry

defense industry

Pre Packaged Reorganization Plan

PPRP

Ranko Vukovic

truck production

army truck production