Prva Petoletka industry from Trstenik, central Serbia, and the Italian company Usco, manufacturer of spare parts for construction machines, will sign a memorandum of understanding on April 12, Prva Petoletka Deputy Director General Slobodan Dumanovic told Tanjug Tuesday.

The Italian company, which has been cooperating with some of the factories within Prva Petoletka for over 10 years, expressed readiness to buy out the factory of servo-steering gears more than one year ago, but the factory was not privatized then, Dumanovic stated, adding that conditions have now been met for the sale of Mikroelektronika.

"The Italian partners made a commitment to provide the technology, invest in machines and hire 50 to 100 workers, so the signing of the Memorandum of Understanding will only confirm these commitments," Dumanovic underlined.

Mikroelektronika will be the third privatized factory in Prva Petoletka. So far partners have been found for PPT Inzenjering (PPT Engineering) headquartered in Belgrade, and PPT Transport which was taken over by Dunav osiguranje (Dunav Insurance) company based on the debt of EUR 170 million.

In addition, talks have recently been held with the Russian company Trestgidromontaz, which is interested in the cylinder factory, as well as with the Association of companies of the Chelyabinsk Oblast in Russia, whose members are interested in purchasing several factories.

Dumanovic pointed out that talks with Russian businessmen are underway, adding that a meeting will be organized very soon so as to obtain more concrete information on their offers.

Commenting the monthly subsidies of the Ministry of Economy and Regional Development which totaled RSD 40 million, Dumanovic said that the aim of the management of the factory, which used to employ 16,000 people, is to create a sustainable business climate, as the subsidy payments are soon to cease.

Owing to the assistance, in 2011 Prva Petoletka increased its turnover from RSD 28 to 35 million, and its export by 15 per cent. The plan is to reach the turnover of EUR 40 million in 2012.

The average salary in Prva Petoletka, which has 3,250 workers, is RSD 30,000 (EUR 1=RSD 111).