PM visits Djuro Djakovic company, €20 m loan agreement signed

Prime Minister Andrej Plenkovic on Thursday visited the Djuro Djakovic metal and mechanical engineering group, based in the eastern town of Slavonski Brod, and on that occasion a HRK 150 million (€20 m) loan agreement was signed between the group and the HPB postal bank.

"The purpose of today's visit is connected with the recent government decision to issue a loan guarantee in the total amount of HRK 300 million (€40 m). During our visit today, a loan agreement was signed with HPB for the initial HRK 150 million which will be used to revitalise the business and as a basis for the restructuring and long-term sustainability of Djuro Djakovic," Plenkovic told the press after meeting with the company's management and local government officials.

Plenkovic said that Djuro Djakovic, which employs about 860 workers, was one of the economic pillars of Slavonski Brod-Posavina County and the entire Slavonia region.

"In this way we extended a helping hand to Djuro Djakovic, which has a great tradition. We want this quality production of wagons for clients from Western Europe to continue, as well as this special program relating to defence. The Ministry of Defence will be among major clients in the years ahead," the prime minister said after touring the production plant of Djuro Djakovic Special Vehicles.

Asked what guarantees the government had that the new management would be functioning, Plenkovic said that they had confidence in the new chairman of the management board, Hrvoje Kekez. 

Kekez was appointed earlier this month to a six-month term expiring on July 7.

"We expect them to embark on restructuring and find a true strategic partner who will ensure a successful operation of Djuro Djakovic on a commercial basis. We are now turning a new leaf," the prime minister said.

Text: Hina

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