Turkish Kastamonu Entegre eyes Bosnian lumber mill Sana
7. Turkish company Kastamonu Entegre has shown interest in acquiring a lumber mill in the ex-Yugoslav country.
Jan 24, 2007. /Lesprom Network/. Turkish company Kastamonu Entegre, which owns Bosnia's largest paper mill Natron Hayat, has shown interest in acquiring a lumber mill in the ex-Yugoslav country, SeeNews reported.
A delegation of Kastamonu Entegre has recently visited the Sana lumber mill and has expressed interest in a possible privatization, Nezavisne Novine daily quoted the chief of the Sana workers' union, Muhamed Haskic, as saying.
The Turkish entrepreneurs have said they planned to launch production of plates for the furniture industry and have been looking for a lumber producer in Bosnia which would respond to their requirements, Haskic added.
In November 2005, Bosnia's Una-Sana canton cancelled a deal to sell the Sana lumber mill to Montenegro-based Balkan Timber Group due to unfulfilled contract obligations. The Una-Sana canton is one of the 10 cantons of the Muslim-Croat Federation, which together with the Serb Republic makes up war-divided Bosnia.
Balkan Timber Group acquired 67% of Sana from the state in December 2004 and restarted production in the idled company a few months later, but failed to invest 3.0 million marka (Euro 1.5. million) in production and to create 300 jobs as part of the privatization agreement.
Turkish Kastamonu Entegre set up a 70/30% joint venture with Bosnia's biggest paper mill, Natron, in February 2005. The company secured 14 million marka (Euro 7.1 million) equity capital of the joint venture, called Natron Hayat, and pledged to invest 60 million marka (Euro 30.6 million) in it within two years after the purchase.
Natron Hayat produces pulp, kraft paper, corrugated cardboard, cardboard products and commercial packaging.