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The Government of the Republic of Serbia

In the service of citizens

HIP Petrohemija savings €13m

Belgrade, 17 February 2010

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today that four months after the beginning of production, the savings of the petrochemical complex HIP Petrohemija stand at €13 million.

The restructuring of the company has produced good results owing to favourable agreements with suppliers and the reduction of expenditure, said Dinkic.

Dinkic said that he is satisfied with today’s talks with Petrohemija executives and the factory trade unions and is pleased to see the results achieved since the completion of restructuring and the beginning of production.

Major savings have been made compared to the previous period. Petrohemija should focus on increasing savings, improving energy efficiency and starting a new investment cycle, said Dinkic.

We have decided to obtain a loan for new investments from the European Investment Bank as soon as possible. It is estimated that €70 million needs to be invested in the upcoming years, for since the 1980s no investments were made in the company, Dinkic said.

He said that Petrohemija is potentially the most profitable state-owned company and that €200 million profits are expected this year. The factory can very soon make €300 million from exports, with previous financing.

Dinkic said that new investments will satisfy the ecological aspect as well and that modernisation of technology will make Petrohemija a factory that fulfils all EU ecological standards and citizens of Pancevo will no longer have to be fearful of pollution.