The Serbian Privatization Agency [website] announced that only one offer was received in its latest privatization effort for FKL Bearing. And, the agency said, that one offer was far from complete and could not be processed.

Founded in 1961 as a co-op named Metalum, it began using the FKL (Fabrika Kotrljajucih Leaja) brand in 1965. Later moved and renamed FKL a.d. Temerin, FKL became a joint stock company in 1990. Partially owned by private investors, it remains 67.9% owned and run by the government.

FKL's single large facility is located in Temerin, approximately 120 kilometers north of Belgrade.

FKL manufactures a product line of approximately 2,500 ball and roller bearings, needle roller bearings, spherical bearings, and cone bearings. The company also produces cardan shafts and universal joints. Temerin is certified ISO 9001 and ISO 14001, employing approximately 600 workers. FKL bearings are sold in Europe, the United States, Asia, and Africa.

The offer for FKL was reportedly made by the partnership of ZAO Tehnika Servis (Russia); and Dragan Rodic, FKL's General Manager.

The bid reportedly involves an initial offer price of € 1 million (USD $1.4 million), another € 1 million in guaranteed capital expenditures over the next five years, and acceptance of the minimum obligations from the country's social welfare program.

Although the bid was incomplete, it is reportedly the first proper offer since the privatization agency started soliciting for FKL back in 2003; the current round began this past May and wound up in October.

With so little interest, the bidders are being given another opportunity to have the missing documentation resubmitted and completed for processing any time by the end of 2008.

For 2007, the privatization agency said FKL had net income of RSD 7.5 million ($116,000).

Because Serbia is a net importer of bearings, the government is seeking investors who can make the necessary commitment to expand FKL's market share inside the country as well as for export.