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CZECH MINISTER ANNOUNCES MAJOR PRIVATIZATION SUCCESSES

 CZECH MINISTER ANNOUNCES MAJOR PRIVATIZATION SUCCESSES
 WASHINGTON, May 7 /PRNewswire/ -- The Czech Republic announced today the successful privatization of the first wave of more than 1,700 large companies and 20,000 small enterprises -- a total foreign investment valued at more than $5 billion.
 Tomas Jezek, minister of privatization of the Czech Republic, in his first visit to Washington, told State Department officials that since the process began last fall, American companies alone have committed to invest more than $1.4 billion in Czech companies. Another $2.5 billion has been committed to investment by German corporations.
 In all, some 180 foreign investors have participated in the first wave of privatizations. In June, Jezek said, a second wave of 3,500 more privatizations will begin.
 The scope and timing of the privatizations make the program the broadest and most successful ever undertaken.
 "Major international corporations are investing in Czechoslovakia to build a manufacturing base for exports to both western and eastern Europe," Jezek said.
 The first wave of privatizations includes a $100 million commitment by Kmart over the next three years, which the minister announced jointly today with Joseph Antonini, chairman and CEO of Kmart. The American retailer disclosed that it was purchasing the Maj department store in Prague which will be transformed into the first Kmart in Europe.
 Other privatization projects range from a $2 million investment by Crown Cork in a bottling technology facility to a $413 million investment by Philip Morris in the Tabak cigarette manufacturing company. Other American firms with major investments in the first wave of privatization include Dow Chemical with a $250 million investment, Procter & Gamble, Cabot Corp., TRW, Sara Lee, General Motors, Otis, American Standard, Rockwell, Ford, Stanley Works and Coca-Cola. A more complete list, together with the dollar commitment, follows.
 The program is being undertaken with the assistance of a team of American investment bankers and accountants headed by Mart E. Bakal, chairman of Crimson Capital, whose advisory functions are funded by the United States Agency for International Development.
 United States Investment in Czechoslovakia
 (Approximate numbers as of April '92)
 (This list is not exhaustive because some joint ventures and pending projects are not included. Amounts are in millions of dollars.)
 U.S. Czech Industry Amount
 Investor Company Committed
 Dow Chemical Chemicke zavody Chemicals 250
 Sokolov
 Philip Morris Tabak Tobacco 413
 Atlantic West SPT/MPT Cellular Phones 80
 Procter & Gamble Rakona Detergents 44
 Ralston Energy Batteria Slany Batteries 22
 Cabot Corp. Deza Carbon Black 90
 TRW Dack Stroj. Auto Components 12
 TRW CKD Polovodice Electric 5
 Benezov Components, Auto
 Sara Lee Prazirny Coffee Packaging 16
 a balirny Praha
 Teepak Cutisin Sausage Casings 27
 General Motors AZ Bela Wiring Harnesses 18
 Kmart Prior & Maj Department Stores 100
 Otis Tranza Elevators 14
 Sanborn Energodilny Power Industry 3
 American Standard Keramicko zavody Toilets 25
 Teplice
 Rockwell RABS Liberec Auto Components 11
 Ford Autopal Novy Automotive 100
 Jicin
 Johnson Controls OPMP Car Seats 10
 Searle Sanitas Pharmaceutical 15
 Distribution
 Stanley Works Tona Pecky Hand Tools 12
 CPC Zabreh Prepared Foods 4
 Peble Corp. Konzervarny a Distillery 15
 lihovary
 Crown Cork Chuteborske Bottling Technology 2
 Coca-Cola Prazske cukrarny Soft Drinks 89
 a sodovkarny
 Air Products & Ferox Decin Storage Tanks 13
 Chemicals
 Total Investment in Millions of U.S. Dollars 1,408
 Approximate Total Foreign Investment Committed in 91/92 equals
 $5 billion
 Approximate German Capital equals $2.5 billion equals 50
 percent (1st)
 Approximate U.S. Capital equals $1.4 billion equals 28 percent
 (2nd)
 -0- 5/7/92
 /CONTACT: Daniel Vesely of the Embassy of the Czech and Slovak Federal Republic, 202-363-6315/ CO: Embassy of the Czech and Slovak Federal Republic ST: District of Columbia IN: SU:


DC-MH -- DC012 -- 7632 05/07/92 12:32 EDT
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Date:May 7, 1992
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