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The Government of the Republic of Serbia

In the service of citizens

Potential strategic partnership between FAP and China’s largest truck manufacturer

Priboj, 15 September 2009

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic continued his visit to companies across the country to discuss with company managements how the government’s assistance programme affects business.

Dinkic presented the newest government programme which will start in October and will subsidise the purchase of FAP trucks at a discount of €25,000.

He expressed his hope that just as the government helped car maker Zastava from Kragujevac revive its production, this could be a turning point for the Priboj based truck factory FAP.

The recovery of FAP will consist of three stages, starting in October and offering FAP trucks at much lower prices than any other trucks, Dinkic said.

Anyone with a truck older than 15 years will have the opportunity to buy a new FAP truck at a discount of €25,000 and for a loan with a five to seven years grace period and a 4.5% interest rate per annum, he announced.

Also, FAP trucks will be offered at a 20% discount in exchange for used trucks, and the same programme will be applied to 14. Oktobar construction equipment, he said.

Dinkic said that the Ministry is putting a lot of effort into finding a strategic partner for FAP so that they could also export their trucks.

A delegation of China’s largest truck manufacturer Don Fenk will visit Serbia from October 10 to 21. Their visit was agreed during President Boris Tadic’s recent visit to China.

He also announced that the state plans to develop the production of military trucks by FAP.

Dinkic also visited the Priboj factory Poliester, which was successfully privatised in 2008.

He announced that Poliester will soon receive Fiat’s certificates for installing its products in Fiat’s cars, adding that talks will be continued with Fiat leaders to speed up this agreement.

Their products are being tested in Italy. There is also a possibility of a strategic partnership with the Italian Adler Group, which produces a similar type of product, in order to manufacture components not only for the Punto and the new model Fiat is going to produce in Serbia, but also for all Fiat models, Dinkic stressed.

Poliester’s strategic partner is a Slovenian company and it produces interior and exterior parts for passenger vehicles, buses, trucks and tractors, as well as for machines used in agriculture and construction.

Poliester employs around 300 workers and is one of the most important companies in the region.

Dinkic also visited the Prvi Partizan ammunition factory in Uzice where seven workers died and 14 were injured in an explosion several days ago.

He said the government and relevant ministries will see to it that the property is renovated and safe production reinstated within the factory.

Prvi Partizan is one of Serbia’s best weapon producers, which the government has already assisted through a subsidy programme that provided €4 million in favourable loans, Dinkic said, adding that a further €2 million interest free loan will soon be provided.

The government will help the factory to carry out its investment programme for 2010, which includes moving the production halls from their underground facilities, Dinkic said, adding that merchant banks will supply loans for building new halls, with state subsidised interest rates. This means the factory will effectively be granted an interest free loan, he added.