BROWNFIELD BFS

Magnohrom d.o.o. Thermal and Resin-Bonded Brick Plant Facilities Kraljevo Favourable opportunity for investment

Magnohrom d.o.o. Thermal and Resin-Bonded Brick Plant Facilities

The Magnohrom d.o.o., Kraljevo, company included chromite, magnesite and dolomite mines, a refractory materials plant, an electro thermal product plant and a special production programmes plant. Magnohrom d.o.o. has 4 subsidiaries: Magnootpad d.o.o., MagnoFETP d.o.o., Magnoinvest d.o.o. and Magnointel d.o.o.

The thermal and resin bonded brick plant is a part of Magnohrom d.o.o. Currently, this factory is does not have any active production and its facilities are not in use. Magnohrom d.o.o. is searching for a buyer, interested in investing in the facilities and the kick-off of production.

The thermal and resin bonded brick plant includes 4 structures in good condition. The brownfield site is up for sale, without machinery or production equipment. All production has been moved from the plant, after court proceedings with the BOMEX Company, . The site is equipped with complete infrastructure, a separate entrance into the plant yard and a parking lot. Next to the site there is an available lot owned by the Town of Kraljevo. That way, a potential investor has a possibility to expand production in line with his needs.

SInce 2005, when the privatization process of Magnohrom d.o.o. was initiated, to date, the sale of this company, as a whole or in parts, has been announced several times. In 2006, the company was purchased by Global Steel, and the contract was terminated as early as in 2007, on account of unfullfilled contractual obligations. In 2012, Magnohrom d.o.o. stood the best chances to be sold, when RHI – an Austrian consortium was interested in buying it. Despite the difficulties in the privatization procedure, the interest of potential investors in Magnohrom d.o.o. is still high, especially for the refractory materials plant and mines. The last time when the sale of Magnohrom d.o.o. was announced was in August 2014. The full history of privatization of this company is available on the webpage of the Privatization Agency of the Republic of Serbia at www.priv.rs.

BFS I BROWNFIELD SERBIA Promotion of browneld locations in Serbia Magnohrom d.o.o. Legal Entity Data

Business name/DBA: Magnohrom d.o.o. Seat: Dositejeva 314, Kraljevo Date of foundation: 14/07/1948 Status: Active company Legal form: Limited liability company Ownership structure: 100% propriety of the Privatization Agency of the Republic of Serbia Activity name: production of refractory appliances Key products: electrothermal and refractory products

Legal representative: Đorđe Kosanović, Director Reg No.: 07195508 Tax No. - PIB: 101249972 Activity code: 2320 Number of employees: 193

BFS I BROBWFNS F iI E BLRDO SWERNBFIIAEL PDr omotionSERBIA P ofromocija browneld braun locationsld lokacija in Serbia u Srbiji Kraljevo is the centre of the Ras Administrative District and the largest urban municipality in Serbia. It covers 1,530 km². It is 180 km south of Belgrade, in the central part of Serbia. The main road goes through Kraljevo, from Belgrade to , where it splits to the road to Montenegrin coast and the one to Kosovska Mitrovica, Skopje and Greece. Another important road is the „ Main Road“, which goes through Kraljevo and connects Bosnia and Herzegovina and West Serbia (Užice, Čačak) with European Corridor 10. The railroad network of the town of a total length of 125 km comprises - Polje – a single-track main railroad, and Stalać-Požega a single-track railroad. Morava – the military airport in Lađevci (12km) is occupying a strategically important location with potential for Kraljevo civilian ights. Kraljevo is 185 km distant from Priština, 400 km from the Adriatic Sea A Major Crossroads in Serbia and 600 km from the Aegean Sea.

The Town of Kraljevo is in the central part of Serbia, in the heart of Šumadija, in a valley between several mountain massifs. It lies 208 m above sea level, in the valley of the Ibar and the West Morava Rivers. In the Roman Empire Era, the wider area around Kraljevo was part of the „Dubrovnik Road“, or a trade route between Dubrovnik and Constantinople. Today, Kraljevo is an attractive tourist destination, primarily, thanks to numerous nearby spa health resorts (spas - Mataruška, Bogutovačka and Vrnjačka ) and mountains in close proximity: , Goč, Čemerno, Kotlenik and Stolovi. It has a mild continental climate.

The Town of Kraljevo is a former industrial centre, the seat of mechanical engineering and the industry of refractory materials. These factories employed 37% of all the employed people in the town. The structure of employment has been significantly changed due to the process of deindustrialization, and today small and medium enterprises dictate economic activities in Kraljevo. The economy of Kraljevo encompasses 11 sectors, and the economy is predominantly influenced by companies handling trade and processing industries. Thanks to a good geographic position and traffic infrastructure, the Town of Kraljevo is the trade centre of the Ras District. The economy of Kraljevo accounts for 74% of the asset value and 72% of capital of the Entire Ras District.

BFS I BROWNFIELD SERBIA Promotion of browneld locations in Serbia The site INFORMATION ABOUT THE SITE Cadastral lot Nos. 4669/1 of 7104 m², 4665/1 of 4082 m², 4668/1 of 3030 m², 4656/2 of 8226m² and 4665/4 of 1215 m² Cadastral municipality: Kraljevo Number of structures: 4 Land under structures: 4.778 m² water The structures possess a building permit Type of right: + · Concerning structures: ownership - Magnohrom d.o.o. Kraljevo · Concerning land: the right of use - Magnohrom d.o.o. Kraljevo phone Purpose: production + The most important advantages of the site:

· Good geographic position · 0 km from the main road heating · 0 km from the regional road · 180 km from Belgrade + no independed heating · Industrial railway track · Possibility to expand to the system neighbouring lot

BFS I BROBWFNS F iI E BLRDO SWERNBFIIAEL PDr omotionSERBIA P ofromocija browneld braunld locations lokacija in Serbia u Srbiji 1

4 3 2

Structures and Facilities

1.O ffice Space and Warehouse 2.P ower Transformer Station

3.P roduction Facility 4.P roduction Factory and Warehouse

BFS I BROWNFIELD SERBIA Promotion of browneld locations in Serbia SWOT ANALYSIS Strengths Weaknesses

Good geographic position Some investments into reconstruction of Good business climate structures are needed Excellent location for most economic activities; Full traffic and utility infrastructure on the site (primary and secondary infrastructure); For potential construction/ upgrade/ Reconstruction of structures, a site permit and a building permit are issued by the town administration guaranteeing a quick and efficient procedure.

Opportunities Threats

Very professional and well organized town Possibility of delayed permitting process for administration, ready to meet the needs of approvals and permits which are outside of potential investors in the shortest possible the Town administration's purview (the time; mandated time limit is 30 days); The existence of a local incentives package Unfavourable conditions imposed by a together with Republic incentives may be an selected commercial bank. important motivational factor for making an investment decision; High quality, professional, well trained labour force reputable in the region and available for different industries.

BFS I BROBWFNS F iI E BLRDO SWERNBFIIAEL PDr omotionSERBIA P ofromocija browneld braunld locations lokacija in Serbia u Srbiji