Koreans buy troubled Kragujevac company
South Korean firm Yura Corporation has bought the Kragujevac-based company Zastava Elektro for EUR 3mn.
Friday, 09.04.2010.
23:08
South Korean firm Yura Corporation has bought the Kragujevac-based company Zastava Elektro for EUR 3mn. Yura Director-General Nam Yong Woo stated after the acquisition in an auction that he would immediately start preparations to restart production, as well hiring new workers, and ensuring regular wages for those already employed. Koreans buy troubled Kragujevac company Zastava-Elektro made the headlines in the past few months when its striking workers blocked an international railroad in protest over unpaid wages. A previous acquisition contract with Ranko Dejanovic, the husband of Parliament Speaker Slavica Djukic-Dejanovic, had also been terminated in the turmoil that engulfed the company. Now, the new owners say that they plan to reopen the factory and manufacture the same products as before. "We will manufacture parts for Hyundai and Kia (cars). I plan on opening the factory very soon and I will invest more than EUR 8mn and hire more than 1,000 workers,” Nam Yong Woo was quoted as saying today. However, 284 workers currently employed at the factory are unsure of these promises and all of them have accepted severance pay. Acting Technical Director of Zastava Elektro Dejan Stojanovic, on the other hand, expects that promises will be fulfilled. “After so many unsuccessful previous privatizations we simply expect that everything that has been agreed on will be respected. Today it doesn't work, doesn't function, and this was the last factory which actually did work, so you can imagine what the situation is like in that region,” he stressed. Yura Corporation is manufacturing car wires and cables, junction boxes and various plastic parts. They have more than 50,000 employees in Korea, China, Vietnam, the Czech Republic and Slovakia. Yura is the main supplier of Kia and Hyundai companies.
Koreans buy troubled Kragujevac company
Zastava-Elektro made the headlines in the past few months when its striking workers blocked an international railroad in protest over unpaid wages. A previous acquisition contract with Ranko Dejanović, the husband of Parliament Speaker Slavica Đukić-Dejanović, had also been terminated in the turmoil that engulfed the company.Now, the new owners say that they plan to reopen the factory and manufacture the same products as before.
"We will manufacture parts for Hyundai and Kia (cars). I plan on opening the factory very soon and I will invest more than EUR 8mn and hire more than 1,000 workers,” Nam Yong Woo was quoted as saying today.
However, 284 workers currently employed at the factory are unsure of these promises and all of them have accepted severance pay.
Acting Technical Director of Zastava Elektro Dejan Stojanović, on the other hand, expects that promises will be fulfilled.
“After so many unsuccessful previous privatizations we simply expect that everything that has been agreed on will be respected. Today it doesn't work, doesn't function, and this was the last factory which actually did work, so you can imagine what the situation is like in that region,” he stressed.
Yura Corporation is manufacturing car wires and cables, junction boxes and various plastic parts. They have more than 50,000 employees in Korea, China, Vietnam, the Czech Republic and Slovakia. Yura is the main supplier of Kia and Hyundai companies.
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