Among its many activities in Bosnia and Herzegovina, the United States Agency for International Development (USAID) is currently supporting the Privatization of Strategic Enterprises Enterprises in Bosnia and Herzegovina. In this capacity, USAID through International Business & Technical Consultants Inc. (IBTCI) is providing technical assistance to Privatization Agencies in the Federation of BiH, and the Privatization Directorate in the Republika Srpska in the privatization of the enterprises presented in this brochure.
"Bosnia and Herzegovina has changed; because it has changed, I believe it is entitled to a fresh look from investors. You will not find everything to your liking. There is still a great deal to be done. But I can say with confidence that Bosnia and Herzegovina justifies very detailed and extensive research. There are investment opportunities arising from the particular phase of transition in which this country finds itself. Labour costs, rental costs and taxes remain extraordinarily competitive; infrastructure is improving noticeably month by month; and the governments, from the state down to the municipalities, are starting to think in terms of what incoming businesses need. This is fertile ground for economic success. BiH is, indisputably, open for business." Excerpt from the speech by the High Representative Paddy Ashdown Economist Conference, Sarajevo, September 22, 2003
Reasons to invest in Bosnia and Herzegovina TheInvestmentOpportunity The privatization of state-owned property offers investment opportunities. In spite of the drawbacks, the interest of foreign investors is picking up. Positive factors include a stable currency with lowinflation. The proposedreductionoftradebarriers amongBalkancountriesisalsoencouraging, andBosnia& Herzegovina, withitslowlaborcosts, couldbecomeanattractiveregional exportbase. TherearemanyreasonstoinvestinBosniaandHerzegovina, someof whichare: · BiH has a very favorable geographic position - it is situated on the crossroads between Western Europe andtheMiddle-East · Highpotentialfor economicgrowthinCentral andEasternEurope · Stablecurrency- theConvertible Mark- KMwithfixedexchangerateagainsttheEuro · Lowest inflation rate in Central and Eastern Europe · Opportunities for growth in tourism · Protection of foreign investments - Bosnia and Herzegovina is a member of Multilateral Investment GuaranteeAgency(MIGA) · EconomyopentowardstheEuropeanUnionand neighboring countries · Educated, highly skilled and motivated labor force · Competitivelaborcosts · Natural resourses · Reformedbankingsystemwithasignificantnumberof foreignbanks · Lawon Foreign Investments regulating the policy and principles of foreign investments · Foreign investors have equal rights to domestic ones · Rights of foreign investors are particularly protected (tax holiday for 5 years) Several major foreign investors listed by the value of their investments are given in the table below:
PRIVATIZATIONSUCCESS STORIES The following enterprises were the benefactors of USAID technical assistance during the process of their privatization
Standard, Sarajevo FurnitureFactory Company Profile Standard is the largest furniture producer in Bosnia and Herzegovina and is well located in the industrial zone of Sarajevo. Standardproducesfurniture bothforthehouseholdandofficemarkets.Standardhastwogroupsof products: Case products accounting for about two-thirds of sales, and upholstered products accounting for one-third of sales. Standard has strengthened both its design and marketing capabilities in recent years, resulting in many newproductsandnowhasabroad, modernproductrange. Improvements sincethe privatization of the company Germany's Schieder Gruppe, which owns 42 furniture production facilities in Europe, acquired 51.53%(bookvalue KM9,947,976) oftheStandardcapitalownedbythestatein October2001. Per thecontractualagreementanda three-yearinvestmentplan, SchiederGruppeistoinvestKM4million, keepalltheexistingworkforceandemploy 40newworkers. SchiederGruppe keptallof the285existingworkers, hasemployed28newworkersandhas implemented54%oftheagreed investmentssofar. Two years following the privatization, Standard has doubled its pre-privatization production, 75%of which is exported. The company is still running at a loss, but this is a planned and controlled loss due to 10%and 9% amortization rates for the years 2002 and 2003. The year 2004 is expected to be notonly break even, but a profitable business year. During 2002 and 2003, Standard has developed several newproducts: German chairs, upholsteredchairs andtablesmadefromthickwoodboards.
FOGS, Sarajevo Leather Footwear Manufacturer FabrikaObucei Galanterije d.j.l. Sarajevo (FOGS) commenced operations in 1946 as a leather products factory. In 1957thefactorystartedproducingplasticproductsunderthenameof ShoeFactory'Novitet'. In1962thecompany shifted production fromplastic products to leather footwear. From1966 to 1978 FOGS operated as a subsidiary of KTKVisoko, thelargestleathergoodsproducerinB&H.In1978FOGS becameanindependentsocialenterprise ownedby thestate. Priortothe1991-1996warinBiH, revenuesreachedKM12millionannually with90percentofsalesgoingto exports.ExportmarketsincludedtheEuropeanCommunity, formerSovietUnionand theUnitedStates. During the warFOGSoperatedwithoutinterruption, utilizingabout20percentofcapacityproducingfootwearforhumanitarian organizations and the BiHmilitary. In 1999, FOGS operated at 70%of capacity, realizing revenue of KM7.5 million. Improvements sincethe privatization of the company In April 2001, Slovenian company Alpina acquired 67%(bookvalue KM 6,843,772) of the FOGS capital owned by thestate.Perthecontractualagreement, AlpinatookonKM3millionoftheFOGSdebtandagreedtoinvestinthe nextthreeyears KM1.5 millionandkeep305workers. Alpinaemployedan additional 22workersandincreased production from300,000 pre-privatization level to 350,000 pairs of shoes per year. In order to become more efficient, FOGS also went through considerable technological and organizational transformation.
Vitaminka, Banja Luka Food Processing Company Company Profile Vitaminka produces processed fruits and vegetables, juices andspirits. It started its operations in 1947 as a small workshop.Over theyears, Vitaminkahasestablisheditsnameinthefoodindustryinternationallyaswell asin the former Yugoslavia. Until 1987, Vitaminka was a part of IPKBosanska Krajina, an agricultural state-owned holding company, and since then it has been an independent entity. Vitaminka produces 136 different kinds of products in four production halls (juice line, concentrate line; jams, marmalades and vegetable processing line; and cold storage). Fifty percent of its products are fruit-based products (productionof juices,jams, spiritsetc), andother50%arevegetable-basedproducts. In1989and1990, average yearly productionrepresented18,000tons. Thebeginningof the1980sareconsideredtobepeakyearswhen Vitaminka produced 27,000 tons of produce, most of which was exported abroad. Improvements sincethe privatization of the company InJanuary2002, Swiss companyKreis-Industriehandel AGpurchased66.35%ofVitaminkacapital, thatwasowned by the state, for KM250,000. Per contractual agreement and investment plan, Kreis-Industriehandel AG tookover KM5millionof Vitaminkadebts, witha plantoinvestKM10.15millionwithin threeyears; inyear oneKM2.4 million, year two KM3.75 million and year three KM 4million. Kreis-Industriehandel AG invested in the first year KM3.3million, currentlyplansoverKM4millioninvestmentinnewequipmentandhaskeptall ofthe205 workers andemployedanadditional15, aswell assome200seasonalworkers. Sincetheprivatization, Vitaminka purchasedsome 8,000 tons of rawproduce fromlocal farmers and co-ops, indirectly employing several hundred rural households. Vitaminka's productionvolumepriortoprivatizationwas4,000tonsayear, andnow, for twoconsecutiveyears since the privatization, production volume has increased to 8,000 tons a year. Revenues for 2002 were KM16 million, resultinginminimalloss, andrevenuesfor 2003areexpectedtobearoundKM20million, makingitaprofitable business year. Atthe moment, Vitaminka is working ondevelopment of newproducts, getting backto pre-war levels ofproduction, improving design, packagingandproductspromotion.
Fruktona, Banja Luka Producer of non-alcoholic and alcoholic beverages Company Profile Fruktonawasfoundedin 1958, initiallyasasmall producerforthelocalmarket.In1967, thecompanybegan producingcarbonateddrinksandfruitjuices,and madesignificantcapital investmentstoextendits coverageofthe formerYugoslavmarket.In1974, Fruktonasigneditsfirstten-yearexclusiveagreementwithPepsicoInc.to produceanddistributePepsi productsin BosniaandHerzegovina. Atthistime, thecompanyalsobecamepartofan agro-industrialholdingcompany"BosanskaKrajina."In1991, thecompanyregisteredasanindependentcompanyMP"Bosanka"d.d. Bythistime,Pepsi productsrepresentedthebulkofthecompany's sales. While the war in Bosnia and Herzegovina (1992-1996) did not damage any of the Fruktona's buildings and equipment, it significantly impacted the company's business: production and sales declined (in 1996, only 15.6%of the pre-war production was realized); equipment was not adequately maintained. Furthermore, from1992-1996 regular communication with Pepsico broke down, though reestablished in 1996, with contracts extended on an annual basis, but relating only to the Republika Srpska market. Improvements sincethe privatization of the company InJune2003,SwisscompanyKreis-Industriehandel AG,theinvestorthatisalsomajorityshareholderinVitaminka, purchased51.09%ofFruktonacapital, thatwasownedbythestate,forKM25,000, takingonoverKM13millionof Fruktona's debts. Although, contractually, Kreis-Industriehandel AG is not obliged to makeany further investments in Fruktona, in order to keep the Pepsi licence, Kreis-Industriehandel AG is expected to invest some KM 3-4 million in Fruktonain the near future. By contract, Kreis-Industriehandel AG is to keep 150 workers and in the next couple of years employ an additional 20. It was also agreed that Kreis-Industriehandel AG will arrange for pension and severance packages for 40 workers. AccordingtoKreis-Industriehandel AGfive-yearbusinessplan,thefutureis brightforFruktona. Fruktona's productioncapacityisexpectedtobeincreasedevenoverpre-warlevels, andFruktona'sleadingmarketpositionis expectedto be regained once again.
LATEST DEVELOPMENT On November 10, 2003, the Director of the Sarajevo Cantonal Privatization Agency, as Seller, and representatives of Alpha Baumanagement GmbH (Austria), as Buyer, executed the Sale-Purchase Agreement for 100% of the capital of the Holiday Inn Sarajevo. The tender was launched on May 30, 2003, and expired on August 29, 2003. The sole bid, 44 million KM ($26 million), was submitted by Alpha Baumanagement GmbH, which was announced as winner of the bid in mid-September. Closing of the transaction is scheduled for mid-December 2003.
Hospitality 100%of the Holiday Inn Hotel capital, owned by the state, is offered for sale The Holiday Inn Hotel Sarajevo is an international class hotel, which has been awarded five stars by local authorities. Itopenedshortly beforethewinterOlympicGamesof1984. Thehotelhas354keys(338rooms – 52 singleand 286 double, and 16 suites – eightof thembeingtwo-bedroomsuites, sixof themthreebedroomsuites and two five-bedroomsuites), an atriumstyle lobby, three restaurants, a pizzeria, coffee shop, lobby bar, extensive conference facilities with booths for simultaneous translation for up to 500 guests, discotheque, fitness center, business center, garage, parking, fountain and several business premises of variousdimensions. Thehotelis themostprominentinthecountry.Itissituatedinfrontof theParliamentBuildingandcloseto theoldcityandtherailwayandbusstation. TheHolidayInnHotelislocatedonthemainavenueof Sarajevo. It is easily accessible fromthe international airport (10 km). Publictransportation runs bythe hotel andthereis ataxistandattheentrance. The hotel is Sarajevo’s main hotel and the venue for most international conferences and official visits to the State of Bosnia and Herzegovina. It is the largest hotel in Sarajevo with 20.7%of the presentavailable hotel bedsin theCantonSarajevothathavebeenregistered intheCantonal Chamberof Commerce. TheHoliday InnHotelsharewithin thecompetitivesetis28%ofthetotalnumberof beds. The hotel operated continuously even during the 1992 –1995 war in Bosnia and Herzegovina. One of the most successful years was 1996 when revenues reached KM 21.0 million. Hotel Occupancy Occupancyintheperiodfrom1998to2001averaged17.6%. Theoccupancyin2002increased significantlyreaching45.9%, inpartbecausethenumberof roomstakenasabasis for thecalculationwas
reduced to 222 rooms (I – VII floor), in comparison to the total number of rooms – 354, which used to be the basis for the calculation in the previous years. The top threefloors (VIII – X), i.e. 132 rooms, have been leasedasbusinesspremises. Sarajevo Canton Years prior to the war years showSarajevo as a regional tourismhub. The best year was 1987 with 608,000 visitors or 763,648 bed nights. While the majority of visitors were fromthe former Yugoslav republics, 137,000 visitors came from abroad. NotonlywasSarajevoan international destination, itwasalsopart ofatouristcircuitwhichincludedtoursto andfromDubrovnikand other costal cities in Croatia, Montenegro, Mostar, Medjugorje (center of pilgrimage) and other regional cities. These tours are startingonceagain, especially withtherecentrevival ofDubrovnikasthemainregional tourist center in this part of Europe. In 1997, 40,565 visitors were reported. In 2002, the number of the reported visitors was 80,269, out of which 54,866foreignand25,403 domesticvisitors, whichrepresentsanincreaseof 10.7%incomparisontotheyear 2001. Shouldthe2002tendencycontinue, thenumberof visitorsisnowestimated toreach90,000bytheendof 2003. Sarajevo Canton has an area of 1,277 km2 with approximately 400,000 inhabitants. As the capital of Bosnia and Herzegovina, Sarajevo is the political, administrative, economicandculturalcenterofthecountry. Thecityiseasilyaccessiblefrom Europebyroad, air(Munich, Vienna,Zurich, Ljubljana, Zagreb, Belgrade) andby bus and rail. Telecommunications connections are good. SarajevoCantonhasmanytouristattractions. Ithasanarchitecturalandcultural heritage dating fromthe Austro-Hungarian and Turkish Empires embellished with itsownBosnianhistory,culture anddevelopment. Intheoldtown, onecanfeel the true oriental spirit. Theatres, museums, galleries andother cultural institutions contribute tothe richness anddiversity of this capital city. Sarajevo is a bustling city, with open-air cafes, bars, restaurants, churches, markets, minarets and mosques: aunique microcosmofwesternandeastern cultures. Since the end of the recent war, Sarajevo has once again become the host city for international scientificandprofessional conferencesandseminars, symposiums andgatherings. Manyof thesearebeingheld attheHolidayInnHotelconference center. InvestmentOpportunity AninvestmentintheHolidayInnHoteloffers thefollowingadvantagestoan investor: The acquisition of the prime hotel in Sarajevo and Bosnia and Herzegovina •Thehotelis oneofthemostprominentinthecountrysituatedinfrontofthe ParliamentBuildingandclosetotheoldcityandtherailwayandbusstation •HolidayInnHotelistheprimelocationforinternationalmeetingsandthehotelof choicefor foreign embassies. It also has far and away the finest meeting facilities •Byacquiringthishotelthepurchaserwillownandcontrol28%ofbeds stockof themain hotelmarketin theSarajevoCanton • The hotel is in good physical condition. The renovation of 170 rooms and 16 suites situated on thefirst five floors (I – V) was recently completed. It included renovation of the bathrooms and installation of air-conditioning in the rooms and suites • The casino is ready to be utilized, and the discotheque has recently been refurbished and opened for business • The land surrounding the hotel, which is the property of the hotel, has potential for futuredevelopment •Therearemanyopportunitiesforenhancedsalesandprofit • Thestaff is experienced, trained and highly skilled in organization of seminars, conferences, gatherings and various events
livnica sarajevo
Steel Casting Foundry 67%of the Energoinvest Livnicacapital, owned by thestate, is offered for sale TheFoundrywasfoundedin 1950andissituatedon36,000m2 of land, five kilometers away fromthe Sarajevo City Center and six kilometers away fromthe Sarajevo International Airport. The closest sea port is Plo~e inCroatiaontheAdriaticSea,198kmfromSarajevo. Industrial rail trackgoestroughthefactory yard. Customsterminal issituatedonekilometerfromthefactory. During its longstanding business conduct the Foundry achieved remarkable results, and in 1990 it had one thousandemployeesand grantedscholarships tomorethanone hundredstudents. Almosttheentire productionwassold ontheformerSoviet UnionandU.S. markets. Business-productionbuildingsandfacilities, totaling16,500m2, and located ata single location are mostly functional. Generally, the buildings are in good condition, needing some smaller roof repairs and repair of the heating system. The Headquarters building, 733 m2 in size, is functional, exceptfor the second floor that is yet to be finished and equipped. The Foundry is fully equipped for processing almost all products fromits production program. Some of the typicalproductsoftheFoundryinclude: componentsforarmaturesequipment, machinepartsandindustrial productionequipment,coversandgratesof sewagesystems, pipeandpipefittings, partsfor meltingand mining industry, castings for general engineering industry, stoves and fireplaces inserts, automotive components, electrical components, components for cement, petrochemical and chemical industry and componentsforpowerplants. Energoinvest Livnicaoperatesontheworld marketandhasonlya fewdomesticcustomers. Alarge percentageof companysalesgoes throughotherEnergoinvestcompanies, manufacturersoffinal products. BeforetheBosnianwar, 70%ofthetotalproductionwasexportedtotheformerUSSR, while20%wassold ontheU.S. market.Thecompanywasonthevendorlistof well-knowninternationaloil companieslike Texaco, Chevron, British Petroleum, Exxon, etc. In the postwar period, various companies fromUSA, Russian Federation, Germany, Croatia, Italy, Slovenia, Iran, Singapore, Norway and other countries showed their interest in the Foundry's production program. TheFoundryproducescastingsusedinthefollowingindustrybranches: · Processequipment · Components for petrochemical and chemical industry · Components for power plants · Machinepartsandindustrial equipment · Railroadbuilding · Mining · Automotivecomponents · Food and construction industry · Shipbuilding · Water supply TheFoundry has the following main product lines: · Production of steel castings of the following qualities: · carbon casting-construction · casting alloy-hard casting-steel for improvement · highly alloyed-non rusty-fireproof · steelforspecifiedpurpose
· Moldingisbeingcarriedoutin moldingrooms, whosedimensionsvary between650x500/250/250mmand 1020x800/450/450mmfor mechanicalmolding, whilemanualmoldingisbeingcarriedoutinthemolding rooms whose dimensions may go up to 2200 x1950 x 880/1000 mm. Casting weight ranges from0.5 to 2,000 kg · Malleable Iron Casting whose weight ranges from0.5 to 500 kg · Services: · Thermal processing - gloving and tempering · Testingofqualitycontrolof thematerialswhosemaincomponentiseither iron, aluminumor copperandcertifyingtheminaccordancewiththeappropriatestandards: - Metallographicanalysis - Spectraland classicalchemical method - Mechanical testing on high and lowtemperatures - Testingof castings bymethodswithoutblasting · Model making according to the delivered documentation or sample (metal, wooden, plasticandcombinationof thesematerials). · Ductileironcastingisanewproductline, whichwasdevelopedin theyear2000. TheCompany commenced developing this type of casting to meet the altered market requirements Energoinvest Livnica is one of thelarger steel casting foundries in the Balkans. There is one large foundry in Belgrade, Serbia and Montenegro, but it is specialized for automobile industry. Therefore, it does not represent a serious competitor to the Foundry. There is another Foundry in Tuzla that is also producing steel castings, but thecapacity of that foundry is smaller then theEnergoinvest Livnica, Sarajevo. The qualityof castingproducedinSarajevomatchestopqualityintermsofsteelcastingsproductioninEurope.
TheInvestment Opportunity AninvestmentinEnergoinvestLivnicaoffersthefollowingkeyadvantages: · Foundry Sarajevo is one of the rare companies in Bosnia and Herzegovina that deals with steel castings, particularlyvalvesintendedforpetrochemicalindustry, processedequipment, wagonconstruction, food andconstructionindustries · Suitablelocation, inthewesternpartofSarajevo, withitsownrailwaytrack · Foundry preserved production know-howof complex castings for nuclear valves · During the war period, Foundry obtained particularly significant experience in military production · Thecapacitiesof Livnicaarecapableofmeetingmarketneeds · The Foundry managed to keep the majority of its highly skilled and trained staff · It is capable and willing tostart processing newproducts/technologies/metals · There are many opportunities for final processing because one such processor is situated in the Factory area (the company "Armature")
Dairy 67%of the Milco’s capital, owned by the state, is offered for sale Milco's has the largest milk line capacity in Bosnia and Herzegovina of approximately 100,000 liters per one eight-hour shift, while the icecreamline has thecapacity of 6,000 kg per one shift. With a wide range of products Milco's used to cover the biggest part of the market of Bosnia and Herzegovina. Milco's facilities consistofthemainproductionandadministrationbuildingandseveral warehouses. Thesebuildingsare locatedinanindustrial zoneinSarajevo, on14,413m2 compound.AllfacilitiesareownedbyMilco's. Milco's product lines are: · pasteurized milk products · fermented products: yogurt, kefir and sour cream · icecreamproducts · cottage cheese · butter Markets 2 Milco's prime market is Sarajevo Canton. The Sarajevo Canton has an area of 1,277 km with approximately 400,000 inhabitants. As thecapital of Bosnia andHerzegovina, Sarajevo is the political, administrative, economic and cultural center of the country. The city is easily accessible fromEurope by air (Munich, Vienna, Zurich, Ljubljana, Zagreb andBelgrade) and by bus andrail. Since 1996, the number of residents gradually increased. Should the projected population levels continue to rise by 2.5%per annumin the upcoming years, wecanexpectSarajevopopulationtoreach540,000inhabitantsby2015. Nowadays, approximately10,00015,000 expatriatesliveandworkinSarajevo andtheir presenceisimportanttotheCantoneconomy.The expatriate population consistsof manyinternational communityemployeesandother international organizations in more than thirty missions. The Diplomatic Corps is significant: 39 embassies, 6 consulates, and 33non-residential embassies. Milco'shasgoodpotential forgeographicexpansionoutsideitscurrentprimetargetmarkettotheentire BiH market. In the Federation of Bosnia and Herzegovina, Tuzla and Mostar represent good future potential along with the Middle-Bosnia Canton. In Republika Srpska entity, Milco's' primary interest could be focusedon the regions of Eastern Bosnia and Eastern Herzegovina. Furthermore,the Republika Srpska also has several potentialmarketsinthelarger cities. Intermsoficecream, BanjaLukaiscertainlythelargestregionwhere Milco's couldfocusitsattention. Withnecessaryinvestmentsin theproductionequipmentandmarketing activities, while using its historical domestic position as a base, Milco's' strategic goal would be the export of itsproductstotheforeign markets. RawMaterial Base Milco'straditionallyhasboughtrawcowmilkfromprivatefarmers, statefarmsandotherdairies. Themain supplier of Milco's used tobe the state-owned farmin Butmir (10 kmaway fromthe Dairy). Currently, the farm hasaround500milkingcowsproducingdailybetween8,000and10,000liters ofrawmilk.Apartfromthebig farms in Butmir and Sokolac, there is a significant number of small farmers. Some of these small farmers ceasedtheirproductionof rawmilkbecauseofunreliable sales. However,accordingtothelatestdataprovided bytheCantonalMinistryof Economy,thereisalargeinterestonthepartoftherural populationinrevivingthe milkproductionprovidedthattheyareofferedreliable markets, promptpayments, training andfavorable credit lines. Thesmall farmerscould, thus,increasethesaleof rawmilkbyupto50%. TheCantonalMinistryof Economywillgiveitsprofessionalsupportin termsofthetrainingin ordertoreestablishtherawmaterial base. AccordingtoassessmentsbytheCantonalMinistryof EconomyanditsSectorfor Agriculture, WatermanagementandForestry, thereare6,500milkingcowsinSarajevoCanton.However,ifalargerregionof Sarajevo is takeninto account, i.e. the area around Olovo (Nii}i Highland) andtheareasaroundVisoko, Vare{, Breza, Kiseljak, Konjic, Sokolac (Romanija Highland), the number of milking cows is significantly larger. Milco's used to satisfy a major part of its needs for rawmilk in the afore-mentioned regions. The transportation costs are relatively lowgiven that these areas are very near Sarajevo. The future buyer of
Milco's will have a solid basis to become a core initiator of this branch of industry in the wider Sarajevo region. The same rawmilk is used for production of ice creamas for the other products. Another ingredient of icecreamis chocolate, which Milco's buys fromthe local producer "Sarabon." Flavors and stabilizers are bought fromthe Austrian company "SA ROM." Milco's has had goodlong-termrelationswiththesetwocompanies. The suppliers of packaging materials for milk and dairy products, like plastic bags (polypropylene heat-sealed), pure-packs and plastic cups, are based both in BiH and neighboring countries. Milco's buys cones, sticks, packaging paper, paper cups, lids, and cardboxesfor theproductionof icecreaminthedomesticmarket,inCroatiaandSerbia and Montenegro. Packaging materials like paper wrappings, lids, pure-packs and PVC bags have Milco's logo on it. Local publicutilitycompaniesprovideMilco'swithadequatesuppliesof electricityandwater. The boiling chambers for steamproduction can burn both gas and heating oil. Distribution Milco'sformerly hadsalescontractswith1,800retail shopsandwholesalersall overBosnia andHerzegovina. Thesewereannual contractsprovidingaframeworkfor possible cooperationby definingpricesandtermsof payment. Theywereusually renewedevery year. Milco's' customersweredividedintothreemajor categories withthefollowingshares of total sales: 1) private wholesalers 10%; 2) private retail shops 30%; and 3)enterprises and institutions 60%. Milco's has its own fleet to distribute its products. In Sarajevo Canton, most of the production was distributed directly to small private retail shops. If sent longer distances,theproductsaredistributedthroughlargewholesalers. Milco's' advantagerelativetocompetitorsisitsfactorylocationcoveringthemostpopulated part of Bosnia and Herzegovina. The distribution channels are mainly short, as well as the supply channels (therefore, the transportation costs are low). Its range of products allows Milco's to be responsive to its customers. It also has a large refrigerating capacity allowing the company to absorb fluctuations in the market. TheInvestment Opportunity An investment in Milco's offers the following key advantages to an investor fromthe dairy industry: · Largestdairy in BosniaandHerzegovina well locatedinmajor consumermarketin Sarajevo · Well known brand name among consumers in Bosnia and Herzegovina · Highcapacity productionequipment · Infrastructureingoodworkingcondition · Relatively newyogurt production line, which ensures yogurt production without any quality oscillation · Establishedtechnologyof fermentedproducts · Wellestablishednetworkofretail andwholesale outlets · Goodmarketpositionon theinstitutional market · Increasing amount of quality rawmilkavailable fromfarmersnear Sarajevo · Well located facilities on a major site of 14,413 square meters · Potential for product line development and expansion · Potential for expansion of customer base to other parts of Bosnia and Herzegovina, and to neighboring countries · Skillful employees
UNIS TADIV Manufacturer of bolts, nuts, studs and special automobile parts 67%of the UNIS TADIVcapital, owned by the state, is offered for sale UNIS TADIV, founded in 1971, operates in an industrial park in the regional township of Konjic. The land on whichitislocatedoccupies36,918m2 of which 15,035 m2 is workshopandwarehousebuildingsinoperation. Thefacilities andequipmentin operationareingoodworkingconditionand themaximumproductioncapacity is 5,000 tons ayear. UNIS TADIV, a major producer of nuts and bolts, has the capability of making literally thousands of different specifications with its range of tooling. The production process commences with the surface treatment of the rawwire material. In the pre-war period, UNIS TADIV produced nuts and bolts of a generic type (50%) and customizedspecification(other50%), thelatterof whichwasabsorbedbytheautomotiveindustry,primarily GermanVolkswagen. The most important advantage of UNIS TADIV is the facilities for rawmaterial preparation, thus, UNIS TADIVcanworkwithrolledsteel wire asarawmaterial, nottheextrudedone. UNIS TADIV obtained ISO 9001 certification in February 2000. Seventy-five percent of UNIS TADIV's current production is exported and the rest is either bartered or sold insideBosniaandHerzegovinatowholesalers. UNIS TADIVappearstoenjoy agoodreputationwithsome significantcustomersinGermanyandSlovenia, andthebulkofexportsissoldinthesemarkets.UNISTADIV hasbeenprospectingfornewcustomersinthesecountriesandintheCzechRepublic.UNISTADIV's primary customers are bound by buyer / supplier contracts of up to five years. Flexibility to customers has beenoneof their strengthsandsomebuyers cometothemwithcustomspecifications, towhichtheyrespond promptly in quality, quantity and design. Production Facilities and Production Flow UNIS TADIVapplies coldformingtechnologywhenproducingitsproducts. Thecoldformingtechnologyoffers a number of technological advantages with respect toscrap fillings removal (such as better mechanical properties - the internal structure of the material remains the same, stress concentration is eliminated) and a
numberof financial advantages(suchasrational material consumption, shorttechnologicalprocessing,better productivity, small productioncosts). Aspecial emphasisisgiventotheadvantagesofthecoldforming technologywhenitcomestothecastingsusedinautomotiveandmotorindustry. UNIS TADIVdeploysmultistagetransfer presses. Thesearevery productivemachinesgiventhatseveral processingstagesarebeingdoneonasinglemachine. Inordertomeetthecostumers' requirements, UNIS TADIVhastheprogramwhichincludesremovalof scrapfillingsonthemachines(suchaslathes,milling machines,drillingmachinesandgrindingmachines). Heattreatmentisperformedontheelectricflowfurnaces with protective atmosphere. The surface protection (suchas phosphating, zinc-plating, cadmium-plating, chromium-plating,nickel-plating,silver-platingandothertypesofprotection) isperformedinup-to-date equipped facilities. Inspectionsystemconsistsof initial, currentand final inspection. The inspection is performedin a modern measuring laboratory. UNIS TADIV currently manufactures standard and nonstandard products. Themaingroupsof standardproductsarebolts, studsandnutsbythefollowingspecification: · hex cap bolts of M4 to M24mm(length l = 8mmto 200mm) · hexagon sockethead cap bolts; dimension of M4 to M16mm · hexsocketheadcapbolt- withshortheadheight; M5, M6,M8, M10 · hexsocketpipeplug- withconicalthread · cylindrical head bolts with welding nipples; M5, M6, M8, M10 · semi-rounded head bolts with nose for general use; M6, M8, M10 · studsofM6toM24 · hexcap bolts - finished 1/4" do 1" · hexagon nuts of M5 to M20 · hexagonself-lockingnuts · hexagonweldingnutsM5toM16 The nonstandard programof production covers the following: · specialfastenersonrequestordrawingof thecustomers(boltsfor motor,carandtractorindustryand similar) · dynamicallyloadedbolts (connectingrodbolts, linkingboltonmotorwheredynamicshapedesignis required) · forgings of knobs for links for car and tractor industry · forgingsofvalveliftersformotorindustry · valvespringseatingsandotherconnectingelementsfor motorindustry · special self-locking nuts with design of the self-locking part according to the customer's request · special, various purposes nuts, and nuts for welding according to the customer's request · various closing plugs used in motor industry · various forgingswhichcanbetechnologicallyformedbythetechnologyofcold forging; maximumdiameter ∅ 30mmand maximumlength up to 220mm Themostprofitablearethespecial, non-standardboltsmanufacturedaccordingtospecial requestsregarding quality, complexconfigurationandshape. Thesearemainlyboltsandforgingsformotorsandautomobiles (e.g., bolts for connecting rod, bolts for wheels, knobsfor links, dynamic bolts, etc.) Themostprofitableboltsfromthestandardlineareboltsofhigherconsistency- quality8.8; 10.9; 12.9, nuts andhexagonal headedbolt. Theproductsundergocontinuousinnovationsand quality improvements. Customer'srequests arebecoming moreand morecomplex- followupis performedandcontinuous improvement of the technological processes takes place in order to meetfuture customer's requests. TheInvestment Opportunity AninvestmentinUNISTADIVoffers thefollowingkeyadvantagestoapotential investor: · ContinuousdemandintheEuropeanmarketandthepossibilityofbusinessexpansion · Known name in the market of the former Yugoslavia and Europe · ISO 9001 Certification · Proven high quality products · Wide product range and possibility of customized production · Well-trainedandexperiencedmiddleandtopmanagement · Lowlabor costs · Short terms of delivery · Good location with access to the European market · Easy accessto raw materials (Italy and CzechRepublic) and in the future also fromlocal market(Zenica) · Full production process cycle (material preparation, production, heat treatment, protection and packaging) · Productionprocessesinaccordancewiththe existingregulationson environmentprotection
Food Processing Company 56.8%of the SAVAcapital, owned by the state, is offered for sale SAVA is one of the most important food processing companies in RepublikaSrpska (RS), Bosnia and Herzegovina. Until1988, SAVAwasfunctioningasapart of UPI Sarajevo, a large state-ownedenterprise; since then it has operated independently. The company went through a major reconstruction in 1984, at which time a newproduction facility was built and newequipment from West Germany was installed. During the Bosnian war 1992-1995, SAVAmanagedtooperate continuously despite enormous difficulties. Since the end of the war, its efforts havebeendirectedtotheincreaseand development of production and market expansion. SAVAislocatedintheheartof theSemberiaprairie, famousfor itsfertileland. Thecompany'smainproduction facility andplants/installations are placed on10ha of the prime land complex in Bijeljina in the eastern part of RS, BiH,of whichcca. 20,000m2 arecoveredby administration, factory, storage and other buildings. The location provides a range of benefits, including easy access to rawmaterials and markets. Bijeljina is, after Banja Luka, the second largest city in RS, BiH. The distancebetweenBijeljinaandsomemajor citiesinthe region: Bijeljina - Beograd, 136 km; Bijeljina - Zagreb, 400 km; Bijeljina- Sarajevo,186km. Bijeljinahasagoodroad and rail network and it is only 30 kmfromthe highway Beograd-Zagreb. The railway is 200 meters fromthe factory and it leads to the rail center Sid in Serbia where it connectsto the international track. SAVAisthelargestfood producerintheeastern partof RS, BiH. Installed production capacity was 12,000 tons, whilethecurrentcapacityis7,000tonsduetocertain obsolete equipment. The plants and infrastructure are in relatively goodcondition, althoughsomeequipmenthasto be replaced and some buildings need renovation. There aretenproductionlinesplacedinthemainproduction facility: 1. greenpeasandstringbeansline; 2. carrotand beets line; 3. pepper and cucumber line; 4. "Djuvec"; 5. compotesand pasteurized fruits line; 6. "Pindjur" and "Ajvar" line; 7. marmalade line; 8. tomato concentrate line; 9. filling line; 10. auxiliary line (sterilization). Freezing plants for fruits and vegetables are placed in a separate building. Fruits and vegetables produced in Semberia are of exceptional quality and flavor. The use of pesticides is reduced to a minimumand most crops would qualify as
"organically produced"under internationally recognized standards. Thisisanexceptionalopportunity forSAVAto createamarketanddevelopanewlineofnatural products,thusmeetingincreasinginternational demandfor this kind of food products. SAVA'sproductionprogramcanbedividedintotwo categories: • Sweet - production of jams and compotes • Sour - processing of peppers, green peas, string beans, beets and tomato processing SAVA's major markets today are Bosnia and Herzegovina andotherex-Yugoslavianrepublics. Thecompany realizes about 60%of its revenues in the domestic market.SAVAexportstoMontenegro, Serbia, Croatia, Slovenia, Germany, Switzerland, Greece andCanada. InvestmentOpportunity SAVAisan internationallyrecognizedfoodproducerwitha long tradition in production of high quality products. The companymeetsthemostimportant requirementsfor the successful processing of fruits and vegetables. SAVA's attributesare thefollowing: 1) Reputation and tradition for over 50 years 2) Availabilityof rawmaterials: thefactoryisplacedinthe center of the rawmaterials production area, practically inthefield andthenearestfarmisonly20kmdistant 3) Good supply of high quality water: the factory is located on a source of water, which is an essential resourcein thistypeofbusinessstartingfromirrigation totheenormousutilization intheproductionprocess 4) Bijeljinaisthecitywiththegreatestnumberof sunny days in ex-Yugoslavia 5) Qualityofproductsisincomparablewithothersinthe marketowing totheprocessingmethod. SAVA productsare mainly preservatives free, since after the cooking and sealing they are being sterilized at a temperatureexceeding100° Celsius, whichis the thermo method for extermination of all microorganisms andfunguses. Comparedtosomeforeignproducers and even with the local "Vitaminka" company fromBanja Luka, SAVA's products are more homemade, seemnot tobegelatinousandafter alongperiodoftime, water doesnotappearatthesurface 6) Highlevel ofagriculturalknowledge, 'know-how"among farmers and factory workers In brief, SAVA's advantages cover all processing stages, fromthe resources to the final product.
MLJEKARA BANJA LUKA Dairy 65.75%of theMljekaraBanjaLukacapital, ownedbythestate, is offeredfor sale MljekaraBanjaLukaislocatedinthecitycenterofBanjaLuka,capitaloftheRS, on20,280m2, outofwhich 14,284m2 isoccupiedbytheproductionyardandfacilities. ThedistancefromBanjaLukatoViennais560km, Zagreb200km, Belgrade320kmandSarajevoapproximately240km. BanjaLukahasagoodroadandrail networkconnectiontotheBelgrade-Zagrebhighway.Thereisaninternationalairport"Mahovljani"Laktaši, twenty kmoutsideBanja Luka. MljekaraBanjaLukaisthesecondlargestdairyinBosniaandHerzegovina, withaninstalledcapacityof90,000 litres per day. The plant consists of the following production lines: pasteurized milk, sterilized (UHT) milk, fermentedproducts, butter,freshcheeses, fetacheese, semi-maturecheesesandanincompletelinefor production of ice cream(missing freezing tunnel). There are appropriate storagefacilities for all products. MljekaraBanjaLukausedtosell mostofitsproductsontheBosniaandHerzegovina market,andexportedpart ofitsproductiontoCroatiaandSerbia. In1991thecompanyrealizeditshighestannualsalesofoverKM30 million. Products TheproductionprogramofMljekaraBanjaLukaconsistsof: • Pasteurized milk • Sterilized milk(UHT) •Yogurt •Sourcream •Freshcheeses •Meltedcheese • Semi-mature cheeses ("Trapist" and "Edam" cheese) •Butter • Icecream(bulk) Therearethreelaboratoriesinthedairy (acceptance, chemical, microbiological). IthasaCIP washingsystem installedandautomaticsystemsfor neutralizationandbiologicaldecompositionof wastewaters. Cooling is performedbyanammoniacoolingsystem, whichis apartof previouslymentionedsystems. Thefactoryhasits ownthermalenergyproductionusingfueloilboilers. The company organizes its own distribution of rawmilkand finished products. The surplus of milkis sent tothe cityofTuzla, FBiH, tobeprocessedintomilkpowderandinthatformusedduringwintertime. ProductionPlantsandEquipment Thedairywasoriginallybuilttomeetthehygienicstandardsandrequirementsatthetimeofconstruction.The buildingswereconstructedwithspaceleftforprospectiveexpansion. Eventhoughthefacilitiesof theDairyhave beenadequatelymaintained, theycaneasily beupgradedtechnically,tocomply withcurrentstandards. The productionequipmentis ingoodcondition.
Acceptanceof RawMilk •Threeinstalledlinesfor acceptanceofrawmilkcapacity20,000, 15,000and10,000l/h • Threedepots for rawmilkstorage: 50,000 andtwo with 30,000 liters capacity Thermal Processing Lines Therearefourpasteurizationlinesinstalled:twofor"low"pasteurization,andtwofor "high"pasteurization: •"Low"pasteurizationat75- 78° Celsius: capacity8,000l/h •"Low"pasteurizationat75- 78° Celsius: capacity15,000l/h •"High"pasteurizationlineat95- 98° Celsius, forfermentedproducts:capacity5,000l/h •"High"pasteurizationlineat95- 98° Celsius, forpasteurizationof sourcream: capacity 3,000l/h StorageFacilities for Pasteurized Milk •4x10,000litersfor storageofsterilizedorUHTmilk • 1 x10,000 liters for storage of milkfor skimmed cheese •1x10,000litersforUHTmilkbottling/fillingincaseofbreakinproduction Facilitiesfor Preparation, TreatmentandMaturing of FermentedProducts • 12Duplicators with Agitators. Capacity: 9 x2,000 liters, 1 x5,000, 1 x3,000, 1 x1,000 liters and 1x10,000 liters for storage of milkfor skimmed cheese • Four Duplicators for pasteurized sour creamof the following capacity: 2 x2,500 and2 x 2,000 liters Packaging Machines •MachineforpasteurizedmilkfillingintoPVCbags"Prepak"France(IS-6) •Machineforpackagingintocups"Hamba"typeBK6005/5capacity18,000cups/h Production Lines SterilizedMilk: ThreeproductionLinesforsterilizedmilk: sterilizationlinesof4,000 l/h and8,000 l/h capacity andpackaging/filling line of 3,600l/h capacity Cheese:
Twoproductionlinesfor cheese: semi-hardcheeselinecapacity 10,000liters,andfreshcheeseline, capacity8,000liters
FetaCheese:
Thepilotsystemfor ultra-filtrationis installedin thefactory, accompaniedby theequipmentfor pasteurizationof "permeates"andpreparation of feta cheeseproduction
Butter:
•Duplicator (maturingchamber) • Duplicator (maturing), capacity 2,000 liters •Buttermaking(firming)machineAlfa- Laval, capacity400liters •Packagingmachine"Benhil"for1kgpackaging
IceCream:
All equipmentfor productionis installed, exceptfor theshocktunnelfor deepfreezing.
Cleaning Systems: CIP cleaning systemis installed within the consumable products production plant. The capacity of detergent containers is 4 x5,000 liters. An independent cleaning systemis installed in thecheese production plant. There is a systemfor milktrucktanks cleaning. EnergySupply:
Powersupplyisreliableandthereisapowergeneratorinstalledincaseofemergency. Heatingisprovidedfromthefueloil steamboilers.
InvestmentOpportunity Apartfromthecompany'stangibleassets,afutureinvestorwillbenefitfrom: •RecognizedbrandnameinBosniaandHerzegovina • Skilled and experienced workforce • Developednetworkof rawmilksuppliers anda well-developed distribution network •Producerof thehigh-quality "Trapist"trademarkedcheesewithanexportpotential
Industry of fabrics and garments 66.63%of the Svila capital, owned by thestate, is offered for sale Svila is locatedin the vicinity of Celinac, 18 kmsouth-east of Banja Luka, RS, Bosnia and Herzegovina. Thecompanyis situatedon57,040squaremetersof land, 15,345squaremetersof whichareoccupiedby administrativebuildingsandproductionfacilities. Thecompanyhasapermanentrightof useoftheland. Svila consists of thefollowing buildings: • Production plant and offices •Productionfacilityforready-madeclothes,withwarehousesandoffice •Maintenancefacility • Water supply and purification •Wastewaterfilter, withpoolsforsedimentation •Heatingplant Svila has the following installed capacities:
History Svilawasfoundedin1979. Followinga testproductionperioditcommencedregularproductionin1983. Theprimarybusinessofthenewlyfoundedfactorywastheproductionofsyntheticfilaments– PES and PAM, aswell asamixtureof thesefiberswithPAMandCELLfibers. Syntheticfabricsunderwentvarious treatments andfinishing procedures (i.e. scouring, bleaching, dyeing, printing and coating), to makethem waterproof, water resistant, glossy, durable, etc. In this way, their use was expanded fromtextile applications also to be used in rubber, chemical and leather industries, specialty clothing and accessories, aswell asintheproductionof furniture. Beforethewar, Svilawastheonlyfactorywiththis typeoffabric production programin Bosnia and Herzegovina (B&H), and was one of the biggest producers of its kind in theformerYugoslavia. In 1985, thesportswearproductionplantwasconstructed, whichenabledthe launchingofvalue-addedproductsandtheexpansionof theproductionprogramtogarmentproductionfor childrenand adults. Thecompany’s mostsuccessful yearsincefoundingwas1989, whenSvilahad sales of about KM 22 million and employed 745 workers. Production overview Productionisbeingperformedonwell-maintained equipmentthatwaspurchasedfromwell-known Europeanmanufacturers. Duetoitsgoodchoiceoftheacquiredequipment, thecompany’s production programcaneasily beadjustedto meetmarketrequirements. Thecompanyproducesavarietyof products, whichcouldessentiallybedividedintotwogroups– garmentsandfabrics.Inadditiontotextileproduction, Svila produces steamthat is required in the production process. Garmentsproduction- fashion, sportswear, workwear andprotectiveclothing Svilaenteredthebusinessof garmentproductionin1985. Currently thecompanyproducesgoodquality, well-designed ladies’, gents’, and children’s casual wear garments for customers in Bosnia and Serbia. Therearealsooccasional exportstoItaly.Theproductioncapacityvariesdependingonthestyleand complexityof thegarmentornon-garmentproductbeingproduced.Sinceproductionstartedin 1985, sales ofgarmentshavecontinuously increasedtoreachKM1.5 millionin theyear2000.Dependingonthemarket situationandcustomers’ requests, designers makemodelsby sketches. Basedonthemodels, anew collectionismade,whichmustundergostagesofteamapproval, furtherelaborationof themodeland commercial order for the model. Afterwards, the fabric is cut. The cutting roomprepares the fabric for the Sewing Department, where the fabric is taken over by production lines. The Sewing Departmentmakes constant controls between stages, and a final control determines whether the produced garments have met the required standards.
Retail sales outlets Svilahastworetail cashandcarry outlets, whichcontributepositivelytothecompany’s cashflow. Oneof theseunitsislocatedin thetownof BanjaLukaandtheotheris afactoryoutlet. Steam/heating production In addition to textile production, Svila produces steam, which is required for the production process. Depending on thelevel of production andother conditions, approximately 40%of the steamproducedis usedforitsownproductionprocesses,whilethesurplusisdeliveredtoheatapartments, officesand various institutions in Celinac. In addition to theproduction plant, there are auxiliary facilities on the premises that ensure uninterrupted flowof production fromthecompany’s ownsupply ofwaterandelectricalenergy to laboratory, maintenance workshops and employees cafeteria. Investmentopportunity In addition to the fixed assets owned by the company, an investment in Svila will offer the following benefits to a future majority shareholder: •Productionwithtraditionandarecognizednameinfabric production •Widerangeof productsandservices • Ability to customize products and services to meet customers’ requirements •Well-maintainedequipment •Goodinfrastructureinandaroundthefactory • Potential for rapid and uncomplicated upgrading of existing or introduction of newproduction lines •Production locationincloseproximity totheEuropeanmarket • Ambitious and highly-educated management team •Well-trainedandexperiencedworkforce • Relatively low-costlabor • Growing local market due to increased purchasing power of the population •Exportopportunitiesforbothfabricsandgarments •Opportunitiestointroducenewproductsinlocalmarket • Potential to introduce the brand name products of major shareholder or to performlicensed products of trademark garments • Duty free access to EU countries for products made in B&H • Liberal lawon foreign investment
Production of machine tools and equipment for mechanization 65% of the Jel{ingrad .MU capital, owned by the state, is offered for sale Jel{ingrad .MU is located in the industrial zone of Kotor Varo{, RS, Bosnia and Herzegovina, on 86,634 square meters of land, 15,718m2 of which is occupied by the plant and equipment Kotor Varo{ is situated 37 km south-east from Banja Luka and 85 km from the town of Doboj, famous as a strong railway hub The international market for machine tools is estimated to be worth around 40 billion US dollars per year The former Yugoslav market is estimated to be around 50 million US dollars per year, with a growth potential as a result of the expected increase of industrial production in the years to come Plant and Equipment The company has production facility at 7,084 m 2 of floor space and 8,634m2 of space in accompanying buildings, including restaurant for workers, parking place and playground All buildings are in good condition and are functional, but do require minor repairs The .MU production is performed in the following production facilities: Material preparation (gas cutting, saw cutting, shear cutting and straightening, etc) Cleaning and welding fittings Mechanical processing of parts (removal of chips is a dominant part of production) Semi-finished fittings and sub-fittings Thermal and surface processing (annealing, tempering and cementing) Assembly of finished products as follows Assembling fittings and sub-fittings Assembling electro and stirring equipment Assembling hydraulic and pneumatic components Quality control Depending on weight, dimensions, and shape of the product, various means of internal transportation are provided: hand trolleys, forklifts, electrical trolleys, console lifts, cranes, etc Products Eccentric presses Universal presses: EPU 50, EPU 63, EPU 100, EPU 125 where the mark of type presents, eccentric press universal, with the power expressed in tons Inclinary presses are mostly aimed for the packaging industry The primary types of such presses are: PEN 25, PEN 40, PENA 40, PENS 63, and PENS 80 This group of presses has also a special mini line for making foil lids and plates for the food industry of the pressure 5KN, that also belongs to the group of type PMP Universal eccentric presses originated from the cooperation with the company Schmeral Trnova from the Czech Republic Sheet feeding devices Sheet feeding devices are produced as mechanical devices with rolls, and NC (Numerical Control) with rolls, and when combined with a press, straightening machine and winch, they can make an automated line for sheet processing
Mechanical sheet feeding devices are produced in 150 variations and are designed such that a maximum number of fittings and parts are universal for all of them Types of sheet feeders: V double- sided VJ one - sided VR double - sided with the straightening machine at the feed side VRJ one - sided with the straightening machine VRP double - sided with rollers on straightening machine VRPJ one - sided with rollers on straightening machine .or feeding over 2 Hz (120 mov/min) a break is built in This type of sheet feeder is designated with anH before every basic type (HV, HVJ, HVR, HVRJ, HVRP, and HVRPJ) Depending on the sheet width, there are 100, 200, 300, 400 and 500 feeders, and, depending on the step of insertion, there are three types and those are: 100,200 and 300 NC feeding devices are based on mechanical feeders, with their own drive, engine and steering unit, which provide perfect accuracy of feeding and continued intake of tin, as well as the fast change of tools (knives) Depending on the sheet width, five models are produced (DVP 3,2/100, DVP 3,2/200, DVP 3,2/300, DVP 3,2/400 and DVP 3,2/500), where the first number indicates the maximum thickness of the sheet, and the second maximum width of the sheet Heat-metal (formats) inserters Heat metal (formats) inserters are used in combination with inclined presses during the processing of sheet tin They provide a very accurate tempo of insertion and continued feed of tin into the machine .our different types are produced (U.1, U.2, U.3 and U.4) Tin straightening machines Tin straightening machines are used for straightening sheets in automated production of tin parts, tin prints and tin cuts The following straightening machines are produced: Straightening machines for normal straightening with 7 rollers, with one or two pairs of towing rollers, type (MR 125/2, MAR 250/2, MAR 250/4 , MAR 400/2), are combined with winch without engine Straightening machines for precise straightening with 19 rollers and supporting rollers types (SPRT 250/5, SPRT 400/3), are combined with winch with engine All straightening machines have their own drives, with the ability to match their speed with the primary machine Winches for rolling and unrolling sheets Winches for rolling and unrolling sheets are used for carrying and unrolling rolls of sheets, and can be combined with a sheet stretcher Winches without engine (drive) : (MHD 125/5, MHD 250/2, MHD 250/4, MHD 400/2), and they are combined with towing rollers, and Winches with engine (drive) : ( KSP 100, KSP 250/220, KSP 315/300, KSP 250/4, KSP400/2 ) All types without engines are produced as double sided and with engines as one-sided Shears Circular shears KM for cutting smaller format of tin in sheets or strips which can be used independently or as part of a production line Scrap shears MM 315/3 - which are used for disposal of scrap strips Mechanical and thermal processing services Depending on the production capacity available, the factory also provides lathing, milling, drilling, thin works and welding services, as well as thermal processing The company focuses on the further development of its production program in terms of applying the latest achievements and findings in the area of mechanical construction and contemporary stirring systems A great deal of effort is also being given to the development of new products, and activities in adopting the following new products: Production line for making TWIST O.. lids (caps) Hydraulic presses of smaller pressures Investment Opportunity In addition to the companys tangible assets, the future investor will benefit from: An established brand in the region (metal industry) Skilled labor Complete technology and documentation for the existing production program
The ideal strategic investor would provide: Access to previous and new markets Working capital Capital equipment upgrades
Manufacturer of metalworking machinery 65% of the Jel{ingrad .AM capital, owned by the state, is offered for sale Jelsingrad FAMis located 3 kilometers fromBanja Luka, RS, Bosnia and Herzegovina. Banja Luka has a well-developed infrastructure, including road networks, railway, and international airport. Jelsingrad FAMis situated on a total of 179,680 m2 of land, out of which various buildings cover 55,280 m2asfollows: Production building Assemblydepartment Warehouses Auxiliary buildings Officebuilding
21,600 m2 10,800m2 10,000m2 2,420m2 10,460m2
Total
55,280m2
All production facilities are fully operational JelsingradFAMwasfounded in 1937asa mechanicalworkshopandfoundry. In 1952, productionof metalworking machines commenced, and in 1961 the factory started exporting machines. During this period thecompanyhadvery successful businessoperations. In1977a modernizationprogramwasstartedwiththe constructionof aa newandmodernfactory, andthis programwasconcludedin1986withthe constructionof aseparatebuildingfortheassemblingdepartment. In1987JelsingradFAMachievedsalesof morethan DEM 80 million, the highest level ever. Jelsingrad FAMhas been selling its products to over 40 countries for several decades. During that time, the company sold more than 12,000 machines of various types (e.g. presses, shears and other machines) all overtheworld. ThelargestexportmarketwastheformerUSSR, followedbyWesternEuropeancountries– e.g. Germany, Italy, Belgium, Switzerland, Denmark,Sweden. Thecompanyalsosoldtheirproductstothe USandCanada.Beside finalproducts, JelsingradFAMalsosellssparepartsandmachinecomponents, whicharemostlymachinebodies(aboveall for pressesandshears). Today, thecompanyexportsits products, either directly or through sales agents, to Germany, Sweden, Australia, Switzerland, Belgium, Egypt, SouthAfrica, Denmark, Serbia andMontenegro, Slovenia, Croatia, Italy and Greece. Exportsales represent about 75%of the company’s total sales revenues, while sales to the local market is about 25%. The biggest customer for machines, components and spare parts is LVD Belgium, with whomJelsingrad FAM has hadyearsof successful cooperation. Production overview Jelsingrad FAM uses modern technology and components in its production, enabling it to compete with the global competitors(CNC,PC-NCmanagingsystems, PLCsystems, measuringsystems, servodrives,
protection systemby European standards, etc.). The company’s products are used in a number of industries, including the automobile and home appliance industries. Production takesplacein twoplants, whichareconnectedbyanindustrial railway.Partsproduction takes place in the first hall and assembly in the second. The company owns its own transportationsystemandamaintenanceunit, aswell asarestaurantfor theworkers. Metalworking machines production takesplacein thefollowingproduction departments: 1. Preparation of materials (gas cutting, sawcutting) 2. Welding of fittings (bearing structures of machinery) 3. Mechanicalprocessingof parts(removalof chipsisdominantpartofproduction) 4. Making and assembling hydrauliccomponents 5. Thermalandsurfaceprocessing(annealing, temperingandcementing) 6. Assembling of finalized products -. assembling of fittings and sub-fittings -. adding electrical and stirring equipment -. quality control Dependingonweight, dimensionsandshape, variousmeansof internal transportationare provided: handtrolleys, forklifts, electricaltrolleys, consolelifts,cranes,etc. Forassembling ofsuper-heavymachinerythereis anassemblingchannel. Products Thecompanyproduces: • Hydraulic shears (standard and CNC) • Mechanical shears • Billet shears • Hydraulic notching and punching machines with fixed angle 90 • Hydraulic press (40-1000 tons, standard and CNC) •Hydraulicdrawingpress (315tons) • Plate bending roll machines •Mechanicaleccentricpresses, Cframe(160-400tons) •Highspeedeccentricpresses, Hframe(150-400tons) • Leveling machines • Coilers, decoilers, feeders •Otherproductsandservices Mostof thestandardproductsaretheresult ofworkofthelocalexperts,as well as cooperation and license agreements with LVD Belgium(1972), Raster Germany (1972), Erfurt Germany (1971), Schmeral CzechRepublic (1967). Besidethesestandardproducts,JelsingradFAMalsoproducestoorderaccordingto customers’ requests. In that respect, production of presses for deep drawing, all types of straightening machines, wrenches, sheet feeding devices, as well as a line for tin finishing, havebeendeveloped. Investmentopportunity In addition to the company’s physical assets, the future investor will benefit from: •Arecognizednameinthemetalindustry • Awide assortment of products, developed in association with LVD Belgium, RASTER Germany,ERFURTGermany, SCHMERALCzechRepublic •Skilledlabor • Liberal Lawon Foreign Investments in Republic of Srpska
Metal processing and machinery production: production of compressors, pneumatic tools and energy equipment 57.39%of the Trudbenik capital, owned by thestate, is offered for sale TrudbenikDoboj was established in 1949, and in 1952 produced its first types of compressors and pneumatic tools. As anindependent enterprise Trudbenikoperated until 1967 when it became a part of the Energoinvest Sarajevoconglomerate. InNovember2002Trudbenikbecameanindependentjointstockcompany.Since1949, Trudbenikhas gone through many different development stages resulting in its wide production program. The maindevelopmentfeatureiscertainlydevelopmentofscrewcompressorsin1985whenTrudbenikdeveloped itsownscrewprofile. Qualityof TrudbenikproductsisconfirmedbythecertificateISO9001of LloydsRegister. TrudbenikislocatedinDoboj, RS, BosniaandHerzegovina, 100kmsoutheastfromBanjaLuka. Favorable geographical position and goodtransportation infrastructure (road and railroad network) enable quick communication with all regions of Former Yugoslavia, Western and Eastern Europe. TrudbenikDoboj belongs to the group of larger enterprises and consists of three factories at three different locations: Compressors Factory Doboj-Usorawith management and administration of the enterprise located two kilometers southof downtown Pneumatic tools Factory Doboj-Barewithcompleteproduction somefourkilometersnorthof downtown Compressors equipment Factory-Teslicspecialized in production of pressurized tanks and other process equipment, locatedsome25kilometerssouthfromDoboj Totallandareaincludingall threelocationsis140,117m² andtotalsurfaceoffacilitiesis35,161m². Thelandis registered as construction land and Trudbenikhas the right of permanent use. Production overview Compressors Factory – Usoraproducessmall compressorswithspecializedmachinesforcasings, cylinders, crankshafts andvalves production, machines for surface protection, an assembly line and testing area. On the same location but in a different building there is equipment for production of large and screwcompressors and sets:lathe, boringandturninglathe, millingmachines, processingcenters, grindingmachines, machineryfor toothed screws, sharpeners, assembling line for blocks and sets, presses, welding, surface protection, thermo processing, foundry of light metals and galvanicprotection. Department for prototypes is a part of theResearch andDevelopmentSector, thatalsoincludesToolsShopandTestingLaboratoryfor developmentandtestingof compressors. QualityControlSectorconsistsof ChemicalLaboratory,MachineryMeasuringDepartmentand Testing station for compressor sets. Service Sector consists of Repair Workshop for disassembling and repair and of Warehouse for spare parts. Pneumatictools Factory – Bare, producespneumatictools with specialized machinery for pneumatictools and machines of smaller dimensions: drilling machines, lathes, milling machines, machinery for teething, processing centers, grinding machines, thermo processing, preparation and material cutting, surfaceprotection, assemblingandtesting space. Compressors equipment Factory – Teslic, producescompressor equipment with installed hydraulicpresses, cuttingscissorsforthinmetal, upcantpresses, weldingautomatsEPP, argonandCO2procedure, equipment for curvingandgascuttingandequipmentfortestingof weldingspots. Products Productionprogramincludesfollowing groups: 1. large compressors 2. small compressors 3. compressor equipment 4. pneumatictoolsandaccessories Compressors Screw,oil cooled, compressorblocks, five basictypes andgradedbyenginesfrom250kWandpressureof15 bars Small piston compressor setsupto 11kW Pistonstablecompressor sets, air andwatercooledup to110kW
Rotational compressor setsandblowersup to200kW Screwoil stable, air and water cooled, sets up to 250 kW Mobilepistonandscrewcompressor setsupto250kW Screwcompressors withfrequencyswitch(electricity saving) Besidestandardtypeofcompressorunitsfor air, specifictypesfor railways andother pressures are available. Compressor equipment Tanksunderpressure Cyclonicseparators Separators Coolers Driers Tanks Elements ofpneumatictransport Pneumatic tools Drilling machine Grindingmachine Screwdrivers (impactandrotational) Saws Rasps Scissors Cuttinghammers Construction hammers Breakinghammers Staplers Cranes Accessoriesandequipmentforpneumatictools 200 typesof these products are available. Projection andcreation of compressor stations and pneumaticinstallations with existing production programcansatisfy evencustomer specificrequirements. Allproductsaredevelopedinaccordancewithworldstandardsinthis area. Trudbenikalsooffersitsownconstruction-technological solutions. In addition to the production programthere is a foundry with the following activities: Castingwithsilumina(silicaoxide) insandupto30kg/pc Castingunderpressureupto5kg/pc Stampingandpressingupto10kg/pc Tanksunderpressureofallsizesandweldingofconstructionsupto 500kg/pc Machineprocessingofdrilling,grindingandmilling Investment opportunity Besidematerial propertyownedbytheenterprise, investmentinto Trudbenikoffersthefollowingbenefitstoapotentialinvestor: aproducerwithtraditionandrecognizedname competitivequalityofproducts wide productionprogram facilities and equipment in good condition goodinfrastructure significantmachinerycapacities trainedandexperiencedlaborforce favorablelocation liberal Lawonforeigninvestments
