Ion Florescu, manager at East Point - There will be no layoffs

(Ion Florescu)

- If everything goes as planned, there will be no layoffs except if some of 2,562 employees decide to leave voluntarily. Those who decide to leave one of the companies within the East Point group will receive a social program - Ion Florescu, director and a member of the Managing Board of Reconstruction Capital 2, the owner of East Point, says in an interview with Blic.

For exactly one week, Sevojno Copper Mill, the Novi Sad cable factory Novkabel, Klas, Beogradska pekarska industrija (Belgrade Baking Industry) and Belgrade-based Zitomlin have not been in the possession of Zoran Drakulic, but two international funds - RC2 and Darby Converging Europe Mezzanine Fund. These funds acquired stakes in Drakulic's companies two years ago and have so far invested about EUR 100 million in the enterprises in Serbia.

Have you already made a decision to sell Sevojno Copper Mill to businessman Miroslav Bogicevic?

- No. We are still negotiating and there is a possibility of us selling the stake, but a final decision will be made in mid-May. The story also involves banks that already hold a stake in the copper mill and with which we have to agree on the reschedule of loans and other details.

In which companies will you invest the most in the future?

- Our focus is on exports, that is, export-oriented companies. We have so far invested EUR 7 million in Novkabel, which doubled its exports during one year, so that the factory now exports about 70% of products, mainly to Russia. Our intention is to invest another EUR 9 million in that company and in Klas, which is the majority owner of Beogradska pekarska industrija, whereas no further investments will be made in the copper mill in Sevojno and Zitomlin. Production should soon start at Klas' modern facility in Zemun, which is completely aligned with quality standards, and that should help us expand the sales network.

Beogradska pekarska industrija has reported losses of nearly EUR 2 million. Why have you decided to keep it?

- The year 2010 was very tough because of a drought in Russia and a shortage of cereals in the market. We had been making losses until summer 2011, but the second half of that year was much better. In the end, we reported a small loss that should be covered as early as this year. That company is still very important to us.

Do you intend to buy Bambi or Knjaz Milos, which are also put up for sale?

- It is too early to think about further acquisitions. We now want to see effects at the enterprises we have taken over so far.

And then you sell them after some time?

- I believe that we've done a great job in Serbia so far and that the effects of management changes are clearly visible. It is true that funds acquire stakes in companies to take them over, solve the problems and then resell them. However, we stayed in certain companies in Romania for as many as ten years. Essentially, we have no plans to sell our stakes in Serbian companies for now.

Which are the companies that make up East Point

- Sevojno Copper Mill

- Klas

- Beogradska pekarska industrija (Belgrade Baking Industry)

- Novkabel

- Zitomlin

(Note: This complete text is taken from Blic daily newspaper of 10 April 2012)