Trace had purchased large construction enterprise in Serbia

22 Aug 2014

“Trace Group Hold” PLC signed a contract for acquisition of the road construction company PZP – Nis, located in Republic of Serbia. The transaction value is 588 527 555, 50 RSD or approximately 5 million €.

Main assets of the acquired company include a quarry, stone crusher installation with productivity of 400 t/h, three asphalt mixing plants, over 100 units of construction and transport equipment, technical and production facilities, office buildings.

The quarry is located in the vicinity of Dolac and is one of the largest quarries in the Balkans; the adjacent stone crusher installation is designed to produce all types of crushed stone fractions. The company has technical facility in Nis and production facilities across the territory of neighboring municipalities. The administrative offices of PZP Nis are situated in the cities of Nis and Pirot.

PZP Nis is a leading company in the construction sector of Serbia, which in the recent past had constructed sections of the major Pan-European transport corridors crossing Republic of Serbia.

At present time, the company maintains approximately 1300 km of the road network and is active in 15 municipalities.  PZP Nis has 300 employees.

Our expectations are to transform the company into important strategic asset both in medium term and long term plan. At the moment two major European highways are under construction in the surrounding region: E80 (Nis – border crossing with Republic of Bulgaria) and E75 (Nis – border crossing with Republic of Macedonia). Republic of Serbia received officially full candidate status to be admitted as full-fledged member state of the European Union and consequently a serious growth of infrastructure construction activities is expected in the future. Currently, in Republic of Serbia are in force pre-accession funding mechanism and Trace International PLC executes 4 projects financed by these mechanisms.

Trace Group Hold PLC already has 5 years experience on the Serbian market. At this point the structure implements over 48 km of new roads, 30 km of which are highway sections, all implemented projects have total contract value of over 95 million €.

Before the transaction of PZP Nis, Trace Group Hold PLC had another successful privatization project in Serbia – the acquisition of joint-stock company Vior –Velika Morava, which main activities are designing and supervision of major water projects. Two new entities were formed in Serbia – Trace Balkans, which is involved with the construction of highways and roads and New Bridges – specialized in bridges.