Petrohemija finally finds new home: Strategic partnership agreement signed

A strategic partnership agreement has been signed for HIP Petrohemija Pancevo, it has been confirmed for Telegraf Biznis.

Recommended

After several years of a privatization process and attempts to find a strategic investor, the Ministry of Economy has successfully completed the privatization process of HIP Petrohemija AD Pancevo, by signing a Strategic Partnership Agreement with NIS AD Novi Sad.

NIS AD Novi Sad is an existing shareholder in HIP Petrohemija, with a significant share of 20% in the capital structure, one of the most important partners of HIP Petrohemija and a company whose reputation guarantees a successful strategic partnership.

By finding a strategic investor who will invest 150 million euros in the recapitalization of Petrohemija and build a new plant for the production of polypropylene with a capacity of at least 140,000 tons per year -  and there are announcements that the plant's capacity will be much higher - the Ministry of Economy has secured the company's safe business in the coming years, as well as secure jobs and better working conditions for Petrohemija workers, the Ministry of Economy stated.

"By acquiring the new plant, Petrohemija will have the opportunity to improve its business results and confirm its position as one of the largest exporters in Serbia. All this will contribute to improved business climate and further economic development of both the local community and the entire Republic. We are sure that with the joint efforts of the Government of the Republic of Serbia and NIS AD Novi Sad, we will round off another successful privatization that will contribute to further growth of GDP and better positioning of the Republic of Serbia in European and world economic flows," a statement said.

(Telegraf Biznis)