Ei Nis Vacuum Tube Production in Serbia
ID: 160002
This article refers to the manufacturer: To the manufacturer
Ei Nis Vacuum Tube Production in Serbia
04.Mar.08 17:55
0
Does anybody have an update on this vacuum tube manufacturer? I understand that they ceased production and that the company is for sale
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Privatization of Ei in Serbia
05.Mar.08 00:11
According to the link of the Serbian Privatization Agency HERE, the Serbian government is privatizing the Ei conglomerate. Decision has been taken end of 2006 and 1st submissions were to be sent until end of January 2008.
Under the link you will find a link to the complete document you can download. Here is a summary:
"Republic of Serbia
SOLICITATION OF EXPRESSIONS OF INTEREST FOR A FINANCIAL ADVISOR FOR PRIVATIZATION THROUGH RESTRUCTURING OF «ELEKTRONSKA INDUSTRIJA» AD, Nis
The Government of Serbia (hereinafter: the GoS), has received a Grant from European Agency for Reconstruction (hereinafter: the EAR), to be administered by the World Bank (hereinafter: the WB), to facilitate and accelerate the privatization, restructuring and bankruptcy of the socially- and state-owned enterprises (SOEs) in accordance with the provisions of the Privatization Law as well as the Bankruptcy Law.
The GoS now intends to apply part of this Grant for services to be provided by a Financial Advisor to undertake the privatization through restructuring of a company «Elektronska industrija» AD, Nis.
HOLDING KORPORACIJA «ELEKTRONSKA INDUSTRIJA» AD, Nis – in restructuring (referred to herein as Elektronska industrija, Company) is an open-end joint stock company, organized as mixed holding consisting of small and medium sized companies."
Following information can be taken out of the document as historical background on Ei:
Elektronska industrija was founded in 1948, as a manufacturing company mainly producing radio tubes and X-ray equipment. In following years its production was extended to a broader variety of electronics goods, metal and plastic parts for finished products and to machine tools.
Currently the core business of EI is manufacturing and selling of consumer electronic goods, home appliances and metal and plastic parts. These products were designed primarily for the markets of the former Yugoslavia, Western Europe and the former Soviet Union.
Over the last decade Elektronska industrija market share was reduced. Economic isolation of Serbia, lack of access to capital and to modern technologies prevented Elektronska industrija from updating technologies, reduced products innovation and kept away modern management techniques.
During the last decade the Company was not able to follow the pace of rapid technological changes that took place in the world. The lack of fresh capital to support new investments and to modernize the product lines, resulted in outdated, low quality products not meeting demands of the international market. In spite of these difficulties, management has maintained the facilities at a technically acceptable level.
Most of the production facilities of Elektronska industrija are located at the factory site in Nis. Some activities are carried out in Belgrade and other cities across Serbia. A small part of the company’s business is located abroad.
On September 26th, 2006 the Privatization Agency has passed the Decision on restructuring of the Elektronska industrija.
Before that Decision 10 subsidiaries of Elektronska industrija were sold at the public auction, and two subsidiaries were sold by the asset sale.
Elektronska industrija currently has 73 subsidiaries, 10 of which are under direct management of the Holding and 100% majority capital, 47 subsidiaries are under direct management of Holding and with majority capital under 100%, 12 subsidiaries are in bankruptcy, and 4 subsidiaries are located abroad. The Privatization Agency passed the decision on privatization by method of public auction for 23 subsidiaries, 17 of which are currently in privatization program verification process.
Among the subsidiaries 36 have production facilities and 13 operate as service companies in logistics, commercial services, import/export, quality control and banking. The Group precise structure is unclear and needs to be explained.
In fiscal year 2006, Elektronska industrija generated sales revenues of around EUR 6.2 million and net loss of EUR 13.4 million. Total book value of the operating assets at the end of the year was EUR 41.1 million and the initial capital of the Company was EUR 23.1 million.*
In fiscal year 2005, Elektronska industrija generated sales revenues of around EUR 16.3 million and net loss of EUR 6.4 million. Total book value of operating assets at the end of the year was EUR 55.4 million and the initial capital of the Company was EUR 37.6 million.*
The most promising sectors of Elektronska industrija is precision mechanics manufacturing where expansion of existing production facilities could be justified by:
a) low cost of labor and high intensity of work operations,
b) availability of skilled workforce,
c) high international demand for precision mechanics products.
The potentially profitable production might include:
a) Production of mechanical and plastic enclosures, where the estimated increase in production and sales could double
b) Production of TV tubes, where the facility could reach one million tubes per year equivalent to 3% of the European market starting from the current capacity of 400,000 units.
Equity structure: 97.70% socially owned capital, 2.30% share capital (2,27% Republic of Serbia Development Fund and 0.03% Niska banka).
Total number of employees in the Elektronska industrija on December 10th, 2007 is 1333, plus 32 in Holding company. In 2001, Elektronska industrija had 9006 workers. In 2006 the number of employees was reduced by 584 workers (severance payments).
Perhaps other members can bring additional information, especially information related to the "tube" part of Ei.
Under the link you will find a link to the complete document you can download. Here is a summary:
"Republic of Serbia
SOLICITATION OF EXPRESSIONS OF INTEREST FOR A FINANCIAL ADVISOR FOR PRIVATIZATION THROUGH RESTRUCTURING OF «ELEKTRONSKA INDUSTRIJA» AD, Nis
The Government of Serbia (hereinafter: the GoS), has received a Grant from European Agency for Reconstruction (hereinafter: the EAR), to be administered by the World Bank (hereinafter: the WB), to facilitate and accelerate the privatization, restructuring and bankruptcy of the socially- and state-owned enterprises (SOEs) in accordance with the provisions of the Privatization Law as well as the Bankruptcy Law.
The GoS now intends to apply part of this Grant for services to be provided by a Financial Advisor to undertake the privatization through restructuring of a company «Elektronska industrija» AD, Nis.
HOLDING KORPORACIJA «ELEKTRONSKA INDUSTRIJA» AD, Nis – in restructuring (referred to herein as Elektronska industrija, Company) is an open-end joint stock company, organized as mixed holding consisting of small and medium sized companies."
Following information can be taken out of the document as historical background on Ei:
Elektronska industrija was founded in 1948, as a manufacturing company mainly producing radio tubes and X-ray equipment. In following years its production was extended to a broader variety of electronics goods, metal and plastic parts for finished products and to machine tools.
Currently the core business of EI is manufacturing and selling of consumer electronic goods, home appliances and metal and plastic parts. These products were designed primarily for the markets of the former Yugoslavia, Western Europe and the former Soviet Union.
Over the last decade Elektronska industrija market share was reduced. Economic isolation of Serbia, lack of access to capital and to modern technologies prevented Elektronska industrija from updating technologies, reduced products innovation and kept away modern management techniques.
During the last decade the Company was not able to follow the pace of rapid technological changes that took place in the world. The lack of fresh capital to support new investments and to modernize the product lines, resulted in outdated, low quality products not meeting demands of the international market. In spite of these difficulties, management has maintained the facilities at a technically acceptable level.
Most of the production facilities of Elektronska industrija are located at the factory site in Nis. Some activities are carried out in Belgrade and other cities across Serbia. A small part of the company’s business is located abroad.
On September 26th, 2006 the Privatization Agency has passed the Decision on restructuring of the Elektronska industrija.
Before that Decision 10 subsidiaries of Elektronska industrija were sold at the public auction, and two subsidiaries were sold by the asset sale.
Elektronska industrija currently has 73 subsidiaries, 10 of which are under direct management of the Holding and 100% majority capital, 47 subsidiaries are under direct management of Holding and with majority capital under 100%, 12 subsidiaries are in bankruptcy, and 4 subsidiaries are located abroad. The Privatization Agency passed the decision on privatization by method of public auction for 23 subsidiaries, 17 of which are currently in privatization program verification process.
Among the subsidiaries 36 have production facilities and 13 operate as service companies in logistics, commercial services, import/export, quality control and banking. The Group precise structure is unclear and needs to be explained.
In fiscal year 2006, Elektronska industrija generated sales revenues of around EUR 6.2 million and net loss of EUR 13.4 million. Total book value of the operating assets at the end of the year was EUR 41.1 million and the initial capital of the Company was EUR 23.1 million.*
In fiscal year 2005, Elektronska industrija generated sales revenues of around EUR 16.3 million and net loss of EUR 6.4 million. Total book value of operating assets at the end of the year was EUR 55.4 million and the initial capital of the Company was EUR 37.6 million.*
The most promising sectors of Elektronska industrija is precision mechanics manufacturing where expansion of existing production facilities could be justified by:
a) low cost of labor and high intensity of work operations,
b) availability of skilled workforce,
c) high international demand for precision mechanics products.
The potentially profitable production might include:
a) Production of mechanical and plastic enclosures, where the estimated increase in production and sales could double
b) Production of TV tubes, where the facility could reach one million tubes per year equivalent to 3% of the European market starting from the current capacity of 400,000 units.
Equity structure: 97.70% socially owned capital, 2.30% share capital (2,27% Republic of Serbia Development Fund and 0.03% Niska banka).
Total number of employees in the Elektronska industrija on December 10th, 2007 is 1333, plus 32 in Holding company. In 2001, Elektronska industrija had 9006 workers. In 2006 the number of employees was reduced by 584 workers (severance payments).
Perhaps other members can bring additional information, especially information related to the "tube" part of Ei.
To thank the Author because you find the post helpful or well done.
08.Mar.08 09:14
Thank you for the reply!
I'm wondering if anyone else out there has any knowledge of what might happen to this famous vacuum tube producer?!
To thank the Author because you find the post helpful or well done.