Novkabel returning to Russian market – Contracts with Russian partners worth EUR 5 million

The Novi Sad-based factory Novkabel will export its products to Russia through new business arrangements worth EUR 5 million, and they might also get a share in big infrastructural projects in the market, worth nearly EUR 200 million, as confirmed to Novosti by the director of Novkabel, Zoran Stanojevic.

Novkabel was facing bankruptcy slightly over a month ago. However, a PPRP was adopted and an agreement on reprogramming the debt was reached with the biggest creditors, Elektroprivreda Srbije and Srbijagas.

– We can only do our best now, as the first batches of cables should be shipped as soon as this January – Stanojevic points out.

– The export to Russia has always been important, but it was after the visit of our team to our partners over there that we regained their trust and became one of the three companies distributing cables for big infrastructural projects, whose worth is measured in billions of euros. It's important to note that we are the only foreign company to manage to do so.

Novkabel must now prepare for the coming winter period as well as possibly, but also for serious challenges related to export.

– We need to make significant savings in order for the factory to persevere – Stanojevic believes.

– Along those lines is also the plan to reduce the range of products in order to keep the profitable ones. We will reduce the number to around 50 products, thereby reducing the expenses as well.

The management of Novkabel agreed on the debt reprogramming with the big creditors. A part of the electricity debt in the amount of RSD 20 million has already been paid to EPS, and the remaining 60 million will be repaid in ten months.

A total of RSD 4.6 million has been repaid to Srbijagas, and another five million will be paid in the next six months.

– It's important that we've managed to reestablish contact with Huawei, known for its mobile phones, and we expect to cooperate with them on big jobs – Stanojevic points out.

– We have also made considerable progress in the local market, and there's an increasing demand for our products.

Novkabel doo Novi Sad

Elektroprivreda Srbije ad Beograd

JP Srbijagas Novi Sad

Huawei Technologies d.o.o. Beograd

export to Russia

Zoran Stanojevic

PPRP

Novkabel

Novkabel debt reprogramming

export of cables

Huawei

EPS

Srbijagas

cables