The Belgrade-based Machine and Tractor Industry (IMT), which used to be one of the biggest manufacturer of agricultural machinery in the region before going bankrupt, has been sold to the Indian company, TAFE for 66 million dinars (just over a half a million euros).
TAFE was the only company to take part in the auction at which the Serbian tractor manufacturer was sold. TAFE also produces factors, as well as engines, under the Massey Ferguson licence, batteries and automotive parts. The Indian company has been a long-standing business partner to IMT. It is a part of the Amalgamations Group which also owns 44 other companies, has an annual turnover of $2.5 billion, and is the third largest tractor manufacturer in the world.
Want to open a company in Serbia? Click here!
By acquiring IMT, TAFE has bought the right to the company’s intellectual property, which includes the brand, designs and copyright, as well as real estate in Jarkovac. In Serbia, TAFE will produce tractors under the name IMT, and the plan is to launch the first tractors in the market in 12 months’ time.
TAFE manager for Europe, Kamal Ahuja, said that tractors of this brand would be produced in Serbia and sold in southeast Europe, followed by other markets.
“Our intention is to have more than 50% of tractor components come from Serbia, which opens those markets with which Serbia has free trade agreements with”, Ahuja said.
According to him, the new tractor plant will be relocated from its current location in Novi Beograd, which is not suitable for heavy industry. The new location has not been decided as yet.
IMT has been bankrupt since 2015, when the debt amounted to EUR 186 million. The factory used to produce around 400,000 tractors a year and employ around 10,000 people.
This post is also available in: Italiano