Elixir Group buys property of IHP Prahovo-Djubriva - EUR 20 million investment announced

(IHP Prahovo)

Sabac-based Elixir Group, as a sole bidder, has bought the property of Djubriva, part of the former giant IHP (Chemical Industry) Prahovo, for about RSD 465 million.

Since the company was in bankruptcy when its property was put up for sale, the new owner has no legal obligation towards workers, but it has big investment plans for the future.

According to the words of Nikola Vujacic from Elixir Group, this company intends to invest about EUR 20 million in IHP Prahovo-Djubriva over the next 12 to 18 months.

Having survived a privatization disaster, IHP Prahovo - Djubriva had went into bankruptcy and piled up debts before it finally got a new owner. Since Elixir Group was the only bidder interesting in acquiring the company, public bidding did not take long. Djubriva was sold for a half of its estimated value because it was also the starting price pursuant to the Law on Bankruptcy Proceedings.

IHP Prahovo - Djubriva employs 365 workers, but they are not part of the agreement. Only the property was offered for sale, that is, the company without any debts either to workers or to other companies.

Based on the estimates done by the trade union, the company owes about EUR 3.5 million to its workers, both former and current ones. People at the trade union say that they are aware that the new owner has no obligation to repay these debts.

- We expect to hire between 120 and 150 workers right away. We've bought a company with no employees, but we do not want to take advantage of the situation. We are going to be a very constructive partner and try to solve all outstanding problems - said Nikola Vujacic from Elixir Group.

Elixir, a part of which is Sabac-based mineral fertilizer factory Zorka, has started the renovation of that factory's production machines, in which it plans to invest a substantial amount of money.