LPJ SPECIAL INTERVIEW: Mladen Pejnovic, Head, State Property Management Administration (DUUDI)

3 February 2014, LPJ Croatia Issue 70

Q: Regarding the Petrokemija privatisation process, why have you begun a search for a strategic partner and when do you expect the process to be completed?

A: The circumstances in the market have changed, and the state can no longer intervene with various subsidies, such as issuing state vouchers to agricultural producers who then exchange for fertilizer.  We need to comply with European market regulations.  Therefore, Petrokemija has become very susceptible to the new environment in the market and is no longer sustainable without a partner.

The manufacturing plant needs to be modernised, increasing its efficiency.  This requires large investments, which requires a strategic partner.  We have received 3 offers that we consider to be acceptable, and we are now in the 2nd stage of negotiating with the bidders, in order to receive obligatory offers.  We expect to complete the whole process in Q1 2014…

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