HEAD OF RUBBER-FOOTWEAR COMPANY FROM VUKOVAR PRESENTS DEVELOPMENT PLAN

DEVELOPMENT PLAN $ S VUKOVAR, Aug 19 (Hina) - The managing director of the recently reintegrated rubber and footwear factory "Borovo", Vladimir Husar, on Tuesday presented development plans to reporters in Vukovar (UN-administered Danube region of eastern Croatia). According to a plan the factory's new, lawful, administration passed, in the next five years "Borovo" should have between 3,000 and 3,500 employees with wages on the level of the highest average in transition countries, Husar said. For the said period plans include the development of traditional manufacture of leather and rubber footwear and cuneate belts, Husar said, while the manufacturing of car-tyres and rubber technical products would be abandoned, since the market was saturated with such goods. "We shall develop only profitable manufacturing", Husar told reporters, adding the company's administration expected a lot from privatization and the inflow of fresh money. At the moment, "Borovo" employs some 2,000 people, which is above the requirements of current production. Some 4,000 employees are displaced persons whom Croatia pays a guaranteed wage minimum. With the increase of production, they will be returning to work, but as Husar recalled, these were mostly elder persons of whom most would retire. The factory would employ a young labour force, he said. Before the war, "Borovo" employed some 22,000 people and was the biggest footwear manufacturer in the former Yugoslavia. Of the former 650 stores, about 200 work at the moment, in Croatia, Slovenia and the Federation of Bosnia-Herzegovina. Since manufacturing facilities were destroyed in the war, the company is currently estimated to operate with 0.1 percent pre-war potential. The basic capital of "Borovo", registered with the Croatian Privatization Fund, amounted to some DM 650 million, said managing director Husar. The majority of the company's administration are displaced persons who travel from Zagreb to Vukovar once a week. Plans for the future include that top people in the company soon move to Vukovar, but not to their occupied or demolished houses, but temporary accommodation. (hina) ha jn 191605 MET aug 97