VOLKSWAGEN OPENS ITS FACTORY IN SARAJEVO

( Editorial: --> 7132 ) SARAJEVO, Aug 31 (Hina) - The German concern "Volkswagen" has re- opened its factory for assembling cars in the Sarajevo suburb of Vogosca. The factory was re-opened by the German Foreign Minister Klaus Kinkel and the President of the Bosnia-Herzegovina Presidency, Alija Izetbegovic, at a ceremony held on Monday. The factory, which is the only Volkswagen plant in the Balkans, will assemble Skoda Felicia cars. Germany's Kinkel stressed that the beginning of production in the Sarajevo factory was of great importance for Bosnia as it would contribute to speeding up its economic recovery as well as the reintegration process and refugee return. Bosnia-Herzegovina deserves such a chance, Kinkel added. President Izetbegovic expressed gratitude for Germany's help adding that today's ceremony marked the beginning of Bosnia's return to the world market. Volkswagen President Ferdinand Piech said that the decision on reopening the Sarajevo factory was aimed at helping the Bosnian people to have a better life and achieve economic progress as well as at encouraging other countries to invest in Bosnia. The German concern is the majority owner of the Vogosca factory. Before the war, the factory was one of the leading factories for assembling Golf cars. The factory was totally pillaged during the war and Volkswagen decided to reconstruct it after extensive talks with the management of the UNIS company, of which the Vogosca factory is a section, and the Federation leadership. The so-called zero series of 20 Skoda Felicias have already been produced in the Sarajevo factory. It is estimated that about 2,000 Skodas will be assembled by the end of this year. The cars will be assembled from parts which will be transported by railway from the Czech town of Mlada Boleslava. Half of those cars will be sent to the Turkish market. By the end of next year, the Sarajevo factory should assemble 15,000 cars. By the end of 2001, that number should rise to 35,000. Once the factory starts functioning fully, it should have 1,500 employees, who will all go through a special training programme in the Czech Republic. Today's opening ceremony was also attended by high international representatives, Bosnian state officials and a former Austrian Chancellor Franz Vranitzky. (hina) rml 311518 MET aug 98