Tuesday, April 13, 2010

Zastava Elektro sold to Koreans

Source: Beta
KRAGUJEVAC -- A EUR 3mn sales contract was closed at the electric cable factory Zastava Elektro in Rača, near Kragujevac, on Monday.

The buyer was the Korean Yura Corporation – the first direct investment from a Korean company in Serbia, Beta news agency reports.

The Koreans are due to invest around EUR 8mn and employ 1,000 workers.

The sales contract was signed by Zastava Elektro Director Sonja Veselinović and Yura General Manager Lukas Nam. Serbian Economy Minister Mlađan Dinkić was also present.

Lukas stated that his company's biggest clients were Hyundai and Kia Motors and that over 50 percent of production was for these two manufacturers. "Hyundai and Kia Motors plan to up production, we will match them and I am sure that 1,000 workers will be needed in Rača," Lukas said.

Dinkić confirmed that 1,000 people would get jobs by the end of the year and that Yura would be for Rača what Fiat was for Kragujevac, adding that more than 90 percent of products would be for export. According to him, out of the 280 employees, Yura is ready to take over 200 immediately.

Yura is a global leader in electronic distribution systems, with 50,000 employees in Korea, China, Vietnam, the Czech Republic and Slovakia. It manufactures automobile wires and cables, distributor caps, various plastic parts and circuit boards.

Yura's profit in 2008 was EUR 343mn, and EUR 364mn in 2009.

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