Managing Director of Energoinvest Enes Čengić and representatives of the company Temsan – Turkish Electromechanics Industry Corp. Ahmet Sedat Onal and Recep Kir signed today in Sarajevo an agreement on construction of high voltage relay production plant.
Signing of the agreement is a result of the initiative by the governments of Turkey and Bosnia and Herzegovina on the expansion of business cooperation between the two countries and thanks to this initiative, a Memorandum of Understanding was signed between Energoinvest and Temsan.
According to advisor of the Managing Director of Energoinvest Mihad Hajro,the two companies agreed upon the realization of production, that is the launch of the first phase, followed by preparation of a feasibility study to start production in Sarajevo.
“According to preliminary estimates, the project should cost about 13 million euros, and Energoinvest should have a majority stake in the Sarajevo factory.
From our partners we expect to financially participate in the project and to be partners in product placement. The project should bring benefits to both parties, because nobody produces this kind of equipment in Turkey,” explained Hajro.
Managing Director of Energoinvest Enes Čengić said that very soon they expect the commencement of the next phase of the contract.
“Firstly, we signed the memorandum, and today the agreement for the first phase, which give obligation to both parties to do a feasibility study which will show what and how much we need to open the factory in Sarajevo.
From the Turkish side we expected to provide about half of the investment, or about 6.5 million euros. Will form a joint company and it needs to prepare the production of high-voltage equipment for BiH, Turkish and third markets. When the first factory starts with operation, the contractual obligation is to open another factory of the same kind in Turkey,” explained Čengić.
Signing of the agreement was attended by the FBiH Minister of Energy, Mining and Industry Erdal Trhulj who congratulated the signatories and said that a preliminary study shows that this project will open about 80 jobs in the first phase of industrial production.
The intention is to put into operation unused production capacities of Energoinvest with such a project.
“Production of this equipment is a business already very close to Energoinvest. It is absurd for Energoinvest to have this production line in Mexico, and that there is no such factory in BiH. I’m sure that the project will be profitable and that we will open the same factory in Turkey in the second phase,” said Trhulj.
(Source: Fena)
