16.12.2010.

Minister Sutanovac opens "Forging center" in Valjevo

Defense Minister Dragan Sutanovac opened today in Valjevo "the forging plant" which is a joint venture of company Krusik and public company Jugoimport SDPR. The launching new plant that will employ about 100 workers, of which 10 engineers, was attended by the directors' of Krusik and Jugoimport Jovan Davidovic and Stevan Nikcevic, representatives of the Ministry of Defence and local governments, as well as numerous businessmen.

Sutanovac was pleased to attend the opening of the factory that has not been built in more than 20 years and which will ensure the production of artillery shell casings of up to 155 millimeters in caliber. He stressed that the agreement between the two companies was supported by the Ministry of Defence resulting in the employment of workers and improving production quality. Sutanovac said that "The forge center will rely not only on Krusik but will also be employed to meet the production needs of Sloboda Cacak factory", as well as for civilian-military sector.

The Minister stressed that the new factory full capacity production should reach 10 million USD which will reduce the same amount of imports of Serbia thus reducing the foreign trade deficit. The new facility will, in his words, round up the chain of production in the factories of our defense industry.

Sutanovac reminded the present that the Ministry of Defence had promised in 2009 to support the construction of this factory, and now promises to support the opening of a new plant for the missile program. He expressed hope that the Serbian Army would obtain a quality missile system, and that there would be plenty of opportunity for export, since there is a rising interest in the products of our defense industry. The Minister pointed out that the entire production of "Krusik" for 2011 had already been agreed on, and that much has been done in the previous period to revitalize personnel by employing 800 young workers.

Sutanovac thanked the City of Valjevo, for issuing all necessary permits permits to build new factories so promptly. He said that local governments should continue to help Krusik, the same way this factory is helping Serbia.

Jovan Davidovic, director of the Krusik "said the missile "Bumbar, "which was recently launched and promoted, could be the first product of the new facility, whose opening is planned for next year. Davidovic in his address recalled that 92% of plant’s capacities were destroyed in 1999 bombardment and that the factory was gradually revived and put back on its feet s to speak. In 2010 Krusik had a 3.5 billion RSD turnover of goods and services with exports reaching 87%.

Stevan Nikcevic said that "Jugoipmport" went into business with Krusik not only because it was the wish of the state, but because it was a strategic issue and the company. He reminded that the export of a public company in 2000 was some tens of millions USD and today hundreds of millions of dollars, which is, cooperation companies should get the credit for.

The construction of "forging center” is the result of a joint investment worth about 3.2 million EUR. Yugoimport has invested 1.54 million EUR cash capital and thus acquired 51 % stake, while Krusik invested 1.48 million EUR.