ECONOMY

Hellenic Vehicle Industry ready to change hands

hellenic-vehicle-industry-ready-to-change-hands

The transfer of the Hellenic Vehicle Industry (ELVO) to the strategic investor who won the tender called by the state company’s administrator is now a matter of weeks.

On Friday the consortium of Israeli companies Plasan and SK Group submitted the necessary letter of guarantee, opening the way for the transfer of the problematic Greek vehicle company to the “New ELVO,” a company belonging to the preferred bidder, in which the Greek state reserves the right to participate with a stake of up to 21% and with representation on the governing board.

Sources say that the Israeli consortium has submitted a business plan assessed at between 95 and 135 million euros, which the investor commits to invest in ELVO over the next five years.

In this period the Greek state stands to collect over €25 million in taxes and social security contributions, while the entire investment is estimated at about €29 million, according to Finance Minister Christos Staikouras, who is credited with the completion of the privatization project.

The investor’s business plan provides for the gradual hiring of 600 staff, the upgrading of the existing infrastructure, the acquisition of new, state-of-the-art equipment, and the expansion of the industry’s activity to non-military vehicles and new military technologies, the minister recently told Parliament.

ELVO’s sale is finally materializing after seven years of trying and three unsuccessful attempts at its concession.