Finland’s Afarak acquires a stake in Magnohrom

The Finnish company, Afarak has published on its official website that it had signed an agreement about acquiring a stake in the biggest segment of Kraljevo-based Magnohrom, which failed to sell at a public auction in March this year.

The Finnish company has paid 1 million EUR for a stake in the Refractory Materials Plant, Sumadija and Magnezit mines with exploitation and separation of refractory material ore facilities, the headquarters building in Kraljevo, as well as the land on the territory of Kraljevo, Cajetina and Gornji Milanovac.

Want to open a company in Serbia? Click here!

“It is very important that we have a reliable strategic partner acquiring the former industrial giant, reviving the production and re-employing a number of our fellow citizens. Of course, one shouldn’t expect Magnohrom to immediately have 5,000 workers as it used to, but it is realistic to expect from the company to have a healthy business foundation”, Mayor of Kraljevo, Predrag Terzic said.

The public auction, at which the bankrupt Magnohrom was put up for sale for 275 million dinars, took place in mid-March this year. However, no bidders came forward. Some parts of the company were subsequently sold – Belgrade-based company Nelt purchased the Electro-thermal Products Factory (FETP) for 98 million dinars, while Malbex VBI Belgrade acquired the resin and terrazzo brick factory (SVO-TVO) at the price of 13.5 million dinars.

Guy Konsbruck, CEO of Afarak, says that the acquisition of a stake in Magnohrom will ensure that Afarak can supply the growing refractory material industry, and adds that Afarak will also invest in upgrading the technology and equipment at the mines and processing units.

Magnohrom was privatized in 2007 when it was sold to Global Steel, owned by the famous Mittal Family. The privatization fell through even before it was properly carried out. Under the management of the Indian company, Magnohrom was completely devastated with several thousand workers losing their jobs. The company declared bankruptcy in 2016.

(Vecernje Novosti, 19.05.2018)





This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top