The management of the mechanical engineering group Djuro Djakovic reported on Tuesday that they received bank confirmation that Czech company DD Acquisition had paid 100 million kuna (€13.3 million) to buy a 75-percent stake in this ailing Slavonski Brod-based company.

On 1 September, DD Acquisition was given a deadline of 30 days to invest 100 million kuna (€13.3 million) in the group, and during that time an audit of its “non-financial investment, estimated at more than  100 million kuna, is to be completed,” state agency Hina said, without clarifying.

DD Acquisition is poised to acquire a 75 percent stake in the state-owned Djuro Djakovic Group. The government will keep a 25 percent share.

The company, best known for making train cars, has been experience problems with liquidity for at least two years now.

“We have been operating without access to bank loans or government funding since 2020. It is important that DD Acquisition make the payment as soon as possible in order to ensure the survival of the company,” said CEO of the Djuro Djakovic Group, Hrvoje Kekez, earlier this month.

Asked about the company’s future under the new owner, Kekez said that the new owners had plans to turn Djuro Djakovic into “a leading European manufacturer of freight wagons.” This would means launching the production of new types of wagons that have not been produced at the factory before.

“Due to the war in Ukraine, an increase in demand for grain wagons is now expected. As for labor, it is currently in short supply. Considering the investor’s plans in the coming years, I would say that there will be problems in ensuring a sufficient number of workers,” Kekez said.