Krusevac-based lubricant factory to begin exports to Slovenia - Negotiations on exports to Germany underway

Two years after the privatization agreement was terminated and the state regained ownership of Krusevac-based Fabrika Maziva (FAM), this lubricant maker operates successfully, Ljubomir Subara, representative of the state capital, said Friday (31 May 2013).

He told the press that the company had turned profit in both 2011 and 2012, regained the trust of customers and suppliers, paid salaries, taxes and contributions on a regular basis, and settled all other financial liabilities. Two years ago the control of Krusevac-based FAM was taken away from the Nibens Group owned by Milo Djuraskovic, against whom legal proceedings were initiated for causing a damage of EUR 34 million to that company.

Subara specified that FAM had about 2,000 customers at the moment, 10 percent more than in the period leading up to the privatization agreement termination, adding that salaries, taxes and contributions were paid on a regular basis. Last year FAM paid EUR 4 million in VAT, he noted.

He also said that there was a possibility of company exporting its products to Western Europe, which has already been the subject of negotiations between the factory management and partners from Germany. Petrovic added that FAM had recently formed a company in Slovenia to be engaged in exports of FAM products to that country as well as collecting necessary permits.

The lubricant factory currently exports 27 percent of its production, primarily to Romania, Bulgaria, Macedonia, Hungary, Bosnia-Herzegovina, Czech Republic, and Ghana.