Stekloplastik privatization effort restarted

Stekloplastik (Ukraine), the state-run developer and manufacturer of glass-reinforced and thermoplastic products, is once again for sale. The Ukraine State Property agency, which owns 76% of the money-losing venture, announced this fifth effort at privatization. Located on the Black Sea in the Crimean region, Stekloplastik's product line includes nonferrous bearings, among a wide variety of other items. The facilities cover approximately 12,000 square meters, and have capacity to produce over 800 metric tons of material each year. The Ukrainian government has put a variety of conditions on the purchase, and these restrictions are reportedly why there were no bidders in any of the previous four efforts to dispose of the company -- the most recent being June 2002. Minimum bid for the government's 76% share is 8.5 million hryvnia (approximately USD $1.6 million). In addition, the prospective buyer must agree to invest at least 1 million hryvnia ($185,000) in capital improvements, not change the company's product line or businesses for at least three years, and keep all current employees on the payroll for at least six months. The last is an attempt to control Ukraine's unemployment rate, which has been holding at over 11% for several years.