November 26 (SeeNews) - The management of Croatia's Djuro Djakovic Special Vehicles (DDSV) has resigned over inability to solve the company's financial problems, the parent company, Djuro Djakovic Group, said on Tuesday.
The management had made several unsuccessful attempts to find alternative financing in order to deliver on DDSV's commitments on signed contracts which secure employment for a further 18 months, including the completion of more than 100 railcars, Djuro Djakovic Group said in a statement.
"Even after several months of intensive activities an adequate decision has not been found, while the company is, for the first time in 15 years, with blocked accounts and unable to pay out salaries. At the same time, the company is becoming more and more exposed to outflow of workers, not only in the manufacturing jobs but also engineering and management staff, being constantly under threat of contract cancellation by first-class buyers from EU countries," the statement reads.
It added new management will be appointed at DDSV by December 12.
In August, DDSV signed a 137 million kuna ($20.3 million/18.4 million euro) contract to deliver 4-axle covered Shimmns-type railway cars for cold rolled sheet coils to a French client, with the delivery scheduled to begin at the end of 2019 and continue throughout 2020.
In the past 10 years, DDSV has developed, manufactured and delivered a variety of freight railway cars for clients in Western Europe.
The company is also active in the production of armoured combat vehicles and develops a tank modernization programme, in line with the newest military technologies that include mobility upgrading, firepower enhancement and survivability improvement.
(1 euro = 7.43425 kuna)