Published on Monday, 06 February 2012 08:08
The machinery and equipment industry in Serbia is still in development and constant changes on the list can be expected in the future. With reason, a lot is expected from this sector in the future, bearing in mind tradition, significance, publicized investments and government activities aimed at attracting the new ones.The machines and equipment sector, due to the multiple effects it has on the rest of the economy, particularly its export orientation and the significance of the automobile and electronic industry in the world today, is a pillar of every economy.
The global financial crisis from 2009 has seriously shaken this sector, but Serbia is gradually showing some positive signs. This industry has also been globally affected by the crisis, which has led to a decrease in revenues and, consequently, the consolidation of the sector. Recovery is still slow, but on healthier basis and with positive perspectives.The machines and equipment sector in Serbia is heterogenic and can be divided into several sub-sectors. The automobile production sub-sector should become one of the largest generators of future economic development in Serbia. A lot is expected from Fiat's investments. Fiat Automobiles Serbia, became the sector's leader over a short period, with revenues higher than €100 million. The company even posted a profit, which is specifically a result of the fact that revenues of more than 1.2 billion dinars were posted on the basis of State subsidies for the purchase of new vehicles. Among companies from this sub-sector, the list also includes Gosa FSV, IMT under restructuring and Group Zastava Vehicles under restructuring.
In 2008, Gosa began to take off after initial investments of its new owner from Slovakia, but the crisis shook the production of railway vehicles greatly, for which revenues expressed in euros almost halved. Recovery of the Engine and Tractor Industry would be of high significance for Serbia's economy, but the expected appearance of a foreign partner, restructuring and integrating with another producer, the Engine Industry Rakovica, have been postponed indefinitely. The equipment and devices production sub-sector posted much better results. The investment of Slovenia's Gorenje in Serbia started showing good results, and this company has improved with constant growth of revenues and profitability. Besides Gorenje, the other two representatives of this sub-sector, with major Serbian capital - Alfa Plam and Galeb Group - continue to post good results, although with stagnation or a decline in revenues, but with a growth of profitability measured by the EBITDA margin.The industrial equipment and machines production sub-sector is the largest with five companies, including Termoelektro, which is more oriented to construction and engineering of industrial equipment, but is classified in this group due to its connection with industrial equipment. Kolubara Metal is not the sector leader any more, and its losses are higher and higher. The enterprise will have to restructure its operations to a great extent in order to restore stability. This is of special importance, given that large investments are expected in Serbia's energy sector in the future, as well as that there is market space for this company. The company ATB Sever is in a similar situation.The arms and ammunition production sub-sector has lately been given more significance, showing the ambition to achieve the results of the former defense industry of Serbia. Growth of this subsector is particularly the result of contracted export jobs, with a tendency to continue with a positive trend. Both companies on the list, Prvi Partizan and Holding Corporation Krusik, have a good tradition, but the upcoming period will show whether they are on the road of long-term recovery. Further strengthening of these companies and particularly by joining with companies from its sub-sectors, the machines and equipment sector could actually become the main engine of Serbia's economic development, especially through its contribution to the development of export activities.
Source SIEPA