Serbia: NIS becomes major stakeholder of HIP Petrohemija
Details of the negotiation included a recapitalization of 150 million euros and the construction of a polypropylene production plant within six years.
Last week, the Ministry of Economy of the Republic of Serbia, Andjelka Atanasković, welcomed Kiril Tyurdenev, the CEO of NIS, and Velimir Unković, the CEO of HIP Petrohemija, for the signing of strategic partnership agreement between both companies. Therefore, NIS will increase the ownership share in HIP Petrohemija to 90% from the previous 20.86% with the obligation of a monetary recapitalization of 150 million euros and the construction of a polypropylene production plant with a capacity of at least 140,000 tonnes per year within six years.
“By obtaining a new plant, Petrohemija will have the opportunity to improve its business results and confirm its position as one of the largest exporters in the Republic of Serbia. All this will contribute to the improvement of the business climate and further economic development of both the local community and the entire Republic,” stated Atanasković.
The further development of HIP Petrohemija will consist of the modernization of basic production capacities and the construction of new plants while increasing energy and business efficiency as well as implementing projects linked to environmental protection.
“NIS and HIP Petrohemija are long-term partners and we see a significant potential and many opportunities for further synergy and strengthening of our competitiveness in the demanding market. The strategy of further development of HIP Petrohemija will be aimed at long-term sustainable development of the company for the benefit of shareholders, employees, and the community,” added Tyurdenev.
The firms aim to ensure the long-term sustainable operation of HIP Petrohemija and to strengthen its competitiveness in the market. Thanks to this partnership, NIS continues to diversify its business and has entered the petrochemical sector.
