China’s FAW has shown interest in the privatisation of Serbia’s car manufacturer Zastava and truck and bus producer Fabrika Autobusa Priboj (FAP), Serbia’s economy ministry said on Wednesday.
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Economy Minister Mladjan Dinkic on Wednesday received a FAW delegation which expressed interest in taking part of the privatisation of Zastava and FAP, the ministry said in a statement.
The FAW delegation has already visited Zastava’s factory in Kragujevac, central Serbia, and is expected to visit the FAP factory on Thursday.
In 2005 Zastava signed a deal with Fiat to assemble its Punto model that would be sold under the Zastava 10 brand.
In December 2007 Serbia invited potential bidders for Zastava to conduct due diligence in the company until end-March. The sale of the company is expected to start in April.
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By GlobalDataDinkic said last year that at least five companies – GM, Fiat, Ford, Tata and an unnamed Chinese company – had shown interest in buying Zastava.
The Serbian government owns 99.99% of Zastava.
An attempt to sell FAP failed last year after no investors turned up at the tender called by the government.
The company’s director general Mirko Stojovic said in January they expected a new tender to be called this year. There was interest from the United Arab Emirates, Asian countries, Russia and a consortium of European businessmen, he said.
