October 5 (SeeNews) - Czech industrial group CSG has said it plans to acquire Serbian insolvent construction and agricultural machinery manufacturer IMK 14. Oktobar for an undisclosed sum.
The creditors' committee of IMK 14. Oktobar approved the sale of the company to MSM Group, the Slovak subsidiary of CSG, the Czech group said in a statement earlier this week.
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The contract for the sale of IMK 14. Oktobar was signed by the Serbian Bankruptcy Supervision Agency on Wednesday, Serbian news agency Tanjug reported.
CSG plans to restore the production activities IMK 14. Oktobar, which was declared insolvent two years ago, in the near future, the company said.
"We are very pleased to be able to save another traditional industrial enterprise that has had problems in recent years, but which also has great potential to return to prosperity. Serbian company IMK 14. Oktobar needs to relaunch production and secure enough orders. CSG already succeeded with this task in several companies both in the Czech Republic and Slovakia," CSG CEO, Michal Strnad, said.
The task will be difficult because there have been practically no production activities by IMK 14. Oktobar in the last two years, the director of the Serbian company, Vojislav Sparavalo, said. "Now we will start working very hard in cooperation with the new owner to launch a prosperous business. First of all, we plan to audit the factory, recruit staff on various positions, and get orders to restart production."
IMK 14. Oktobar, based in Krusevac, employed approximately 8,000 people in 2007. Currently, only 150 employees work at the company, with 75% of its current turnover being made for the defence industry, CSG said.
CSG, holding a majority stake in Czech truck manufacturer Tatra, has some 6,000 employees in the Czech Republic and in Slovakia.