Serb government aims to privatize rubber firm

BUCHAREST, Romania (June 30)—The government of the Republic of Serbia has launched a fresh bid to privatize A.D. Vulkan Industrie Gume. The Nis, Serbia-based rubber products manufacturer failed to attract bidders in a similar privatization exercise last year. Vulkan now is significantly more attractive to prospective owners, according to Marius Manoiu, senior manager of Bucharest-based Central Europe Trust Co. Ltd., which is handing the sale on behalf of the Serb government. In particular, the government has agreed to pick up the cost of a severance program for up to 465 of Vulkan's work force of 965, Manoiu said. The deadline for bids is Sept. 15, with the offer open only to groups or firms already involved in the manufacture or trading of rubber products or automotive parts. The sale concerns a 70-percent stake in the company, which makes conveyor belts, flooring and technical sheets, rubber hoses, rubber-coated rollers and plates, rubber boots and footwear materials. 2002 sales were $7.7 million, but the firm was $639,000 in the red for the year.