Chinese invest 15 million EUR in Budimka

The bankrupt factory Budimka, which used to provide food to the entire town of Pozega in happier times, is expected to recover and start the production in the months ahead, all under the management of the Chinese, who will be given the factory by the state for free and invest EUR 15 million in it in return.

During the recent visit of the Chinese president, Xi Jinping, to Belgrade, an international agreement was signed which makes a company from the province of Hebei the owner of Budimka. Jinping had put Budimka, along with Petrohemija and MSC Bor, on the priority list of companies which the Chinese wanted to acquire.

– The meeting of creditors has been scheduled for September 30, where bankruptcy will most likely be declared. The property of Budimka is worth around RSD 1,030,000 and its debts amount to around RSD 1,300,000. Still, around 40% of the debts have been disputed – says Slavko Dobric, one of the three members of the board of creditors, on behalf of the municipality of Pozega.

The state will then write off a part of the receivables, bridge the workers’ service periods and “sell” the entirety of Budimka for free.

– The Chinese undertook to invest EUR 15 million in the company and gather about 1,000 subcontractors from western Serbia to provide raw materials for them. As well, a factory worth EUR 30 million will be founded in the province of Hebei, which will operate under the Budimka brand name and produce juices, marmalades and jams using materials imported from Serbia – Dobric explains. The agreement doesn’t define the number of workers to be employed, but around 300 people are needed to put the capacities back into operation.

(eKapija, 30.08.2016)

This post is also available in: Italiano

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