HTCHolding is winner in race to buy Zetor
HTCHolding is winner in race to buy Zetor
By Peter Hill
SLOVAK engineering group, HTC Holding, has emerged the winner of a bidding process to buy tractor maker Zetor.
Czech finance minister, Jiri Rusnok, announced the successful bid last week, ending months of speculation over Zetors future.
HTC Holding is paying £6.3m for the business and taking on £81m of debt. It has promised to invest more than £6m in Zetor over the next five years, with reports suggesting the company will complete development of a planned second generation "Forterra" range.
Early proposals were for a five-model range from 86hp to 115hp, using Zetor four-cylinder and Same-Lamborghini six-cylinder engines. HTC also intends taking Zetor into the 175hp to 200hp sector, says Czech news agency, CTK.
The Slovak companys rival in the bidding process, Turkeys Uzel Makina, was considered a strong candidate because of its expertise in tractor production as a Massey Ferguson licensee.
But Mr Rusnok says its bid placed too much emphasis on State guarantees. The Czech government has already supported Zetor through a £12m loan to RA Traktor, a subsidiary of the state revitalisation agency set-up to oversee Zetors activities during the sell-off.
HTC Holding is a diverse engineering group with core interests in computer sales and distribution, and subsidiaries making steel products, machine tools, and components for the automotive and aviation industries. Turnover in 2000 was £65m, says the company, rising to a forecast £82m last year.
The companys only involvement in the agricultural machinery business at present is through Polnotech, a subsidiary which makes two-wheel pedestrian tractors and tractor gearboxes. *
Zetors planned second-generation "Forterra" range may now see the light of day. Early proposals were for a five-model range from 86hp to 115hp, using Zetor four-cylinder and Same-Lamborghini six-cylinder engines.