Business News

Prevent Global to Rent Two Plants to Boxmark

Slovenj Gradec, 02 September (STA) - The Slovenj Gradec District Court, which is responsible for receivership proceedings at car-seat cover maker Prevent Global, endorsed on Thursday the proposal by company Boxmark Leather to rent for six months Prevent's production and storage facilities at two locations. The company will pay a monthly rent of EUR 26,000.

The Slovenian subsidiary of the Austrian car-seat cover maker, based in Kidricevo, will also employ up to 250 out of a total of 1,260 former workers of Prevent at the Slovenj Gradec location as soon as possible.

In the meantime, Boxmark will make necessary arrangements for production at the second location, in Radlje ob Dravi, and then relocate the entire production and Prevent workers there, the Slovenj Gradec District Court said in a press release.

The court initiated receivership proceedings at Prevent Global and its subsidiary Prevent avtomobilski deli on 9 August, saying that creditors have until 9 November to register their claims against the companies.

According to Boris Kastivnik, the receiver at Prevent Global, the rent was currently the best option. "In this period we will continue to examine possibilities for keeping production for car industry after the rent contract expires," he told the press.

Kastivnik added that the rent contract was expected to be signed on Friday, and that it would be in force as of 1 September.

The receiver at Prevent avtomobilski deli, Grega Erman, added that the appraisal activities and preparations for the sale of Prevent's property would continue. "The sale proces takes at least four to six months, the rent presents no obstacle for the sale, but instead brings many advantages."

Boxmark Leather director Marjan Trobis told the STA on Wednesday that after the rent contract is signed, the company will be able to start employing Prevent workers next Monday, and launch machines on Wednesday at the latest.

According to him, the company will secure few hundred jobs, firstly at the Slovenj Gradec and Radlje ob Dravi locations (N Slovenia). He added that the company was also interested in Prevent's plant at Mirna na Dolenjskem (E).

Trobis said that the jobs given to Prevent workers would be secured for at least five to eight years. He allowed for the possibility that all former workers of Prevent avtomobilski deli get a job at Boxmark.

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