Government provides EUR 11 million for Prva Petoletka recovery - Restructuring plan prepared for Trstenik-based metal company

(PPT complex)

The Serbian government will support the EUR 11 million investment plan for Prva Petoletka, a company from Trstenik, central Serbia, that makes hydraulic and pneumatic equipment, Tanjug news agency cited Minister of Economy Mladjan Dinkic as saying on Friday.

The government is willing to implement the plan presented by the company's management in the next two years, he said after a visit to the company.

There will first be investments in modernizing the company in the way that can yield the biggest impact in the shortest timespan, he explained.

- We tasked the managers of Prva Petoletka with working with the Ministry of Economy to create a plan on how to have the company finish restructuring within 18 months, deal with old debts and start a new life - he said.

Instead of typical subsidies to cover expenses, the plan involves investments in new equipment because Prva Petoletka has excellent engineers and workers, but also decades-old equipment, he stated.

Minister of Regional Development and Local Government Verica Kalanovic stressed that the government prioritized this year the economic recovery of certain parts of the country, which was impossible without dealing with companies undergoing restructuring.

The government decided to start with the companies that are restructuring and have the biggest problems, and Prva Petoletka is one of them, Kalanovic noted, adding that the company had around 4,000 employees.