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The eBearing News
October 3, 2005
Rulmentul Brasov Privatization
Attracts Two Bidders
copyright © 2005 eBearing Inc.
AVAS, the Romanian Authority for State Assets Recovery -- announced it has received two
legitimate offers for Rulmentul Brasov, the troubled state-owned bearing manufacturer
producing RBR and URB branded bearings.
The notice came after the offer deadline was extended to September 28 for unspecified reasons.
Earlier this year, the International Monetary Fund had reached agreement with Romania for
a package of strict governmental and fiscal reforms. The IMF forced the reform package because
Romania had ignored or been unable to meet so many earlier IMF covenants that its economy was
collapsing. In addition, "visible steps" had to be taken to address widespread corruption
in the government, its state-run programs and businesses.
article: IMF cracks down on Romania; Rulmentul Brasov targeted
The largest part of Romania's interest in meeting IMF rules is to keep in sight its
ultimate goal -- joining the European Union. While Romania has many supporters in its efforts,
there are even more EU members who believe Romania's possible entry is still many years away.
Among the IMF reforms was an agreement that AVAS would privatize or shut down its three most
egregiously ill-managed and money-losing companies by the end of 2005 -- electrical equipment
maker Electroputere Craiova, tractor plant Tractorul Brasov, and bearing manufacturer S.C. Rulmentul SA Brasov.
Rulmentul Brasov, in fact, was on the IMF's 2004 forced-privatization list, but no buyers could
be found, so it ended up on the 2005 privatize-or-close list.
The most recent interest in RBR was from Ortadogu Rulman Sanayi (ORS, Turkey), but ORS walked
away from its USD $3.9 million bid after reportedly discovering the company holds a largely worthless bearing
inventory, an impossibly large workforce guaranteed jobs, and finding it would inherit massive debts, unpaid
bills and unpaid wages. Adding insult, RBR's workforce walked out several times to protest ORS's interest
in the company.
The Authority tried to get INA interested in Rulmentul Brasov, as it was planning to build
a bearing plant nearby. But INA declined and has built a separate plant in Brasov.
In early August, AVAS finally put together a formal system for bidding on Rulmentul Brasov,
issuing a bid invitation announcement.
article: AVAS announces bidding procedures for Rulmentul Brasov
Bidding pre-qualification and other documents were available from AVAS, and the AVAS website. In
addition, the facilities of Rulmentul Brasov were open to inspection as was a "Data Room."
AVAS bidding documents at http://www.apaps.ro
According to AVAS, two bidders have come forward for Rulmentul Brasov: Rulmenti Barlad and
a joint venture proposed by Industrial GP Bucharest and UZUC Ploiesti.
Rulmenti Barlad -- is Romania's second-largest bearing manufacturing plant.
Now a division of Turkish industrial conglomerate Kombassan Holding AS, Barlad was acquired from the
Romanian Privatization Administration in June 2000.
Rulmenti Barlad manufactures ball and roller bearings under the Romanian umbrella URB brand,
and since the acquisition now produces bearings under its own KRS (Kombassan) brand.
Kombassan Holding AS started in 1989 and now Turkey's largest and most influential industrial
and manufacturing conglomerate. Kombassan encompasses over 100 companies and 37 factories across
Turkey and other countries. It owns banks, supermarkets, a tourism and hotel group, paper and tire
manufacturing operations, the bearing business, and even the U.S. retail chain, Hit or Miss.
Industrial GP Bucharest and UZUC Ploiesti joint venture -- UZUC S.A. Ploiesti was founded in 1904,
went through several incarnations and is a now chemical equipment, pressure vessel, and specialty heavy equipment
and nuclear power plant component company. A small part of UZUC is the Special Bearings Shop.
S.C. Industrial GP SRL is a Bucharest-based bearing and industrial parts distributor.
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Bruce Carr edited this content.
Copyrighted material; unauthorized reproduction prohibited.
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Copyright information is on www.copyright.com
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2011, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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