Slovenians and Italians interested in procurement of "Kompo" - Svilajnac, €1,800,000

Company for Production and Sales of Office Material "Kompo" from Svilajnac, once one of the leading manufacturers of office furniture in former Yugoslavia, is in bankruptcy at the moment and one of the solutions to the problem is privatization.

As this company is in bankruptcy since December 2004, the name of the new owner will not be known after the annunciation of the public tender. The buyer will be determined by direct agreement, whereas final decision on the issue will be made by Trade Court in Kragujevac. The value of "Kompo" is estimated to about €1,800,000 and, taking in consideration production potentials and former high rank at the list of the office material manufacturers, there are buyers interested in this company.

According to the words of Mayor of Svilajnac, Dobrivoje Budimirović Bidza, the interested buyers are Slovenian company "Brest" and one Italian company and they are both ready to invest money and broaden production program, i.e. construction of factory for production of plywood.

If these plans are realized, Budimirović points out that these two companies, as potential buyers, guarantee that "Kompo" will employ 1,000 workers until the end of the year, which means that all 350 workers who are former employees of the "Kompo" will be back to work and double more will be employed.

The bankruptcy in "Kompo" was introduced to the suggestion of National Bank of Serbia, the basic argument for which was the fact that the company had been illiquid for a longer time and that it had not been able to settle its debts of about 100 million CSD.