The once-mighty construction giant, Joint Stock Company “Mostogradnja,” now finds itself in bankruptcy with only two employees. Meanwhile, its almost namesake, “Mostogradnja ING,” a subsidiary of the “Millenium Team,” is thriving and seeing increasing profits year after year.
This transformation raises questions about whether the younger company would have succeeded without inheriting almost everything from its predecessor, including employees, equipment, machinery, and facilities. The “Millennium Team” has made significant inroads into various sectors of the Serbian business landscape, including bridge and tunnel construction through its subsidiary, “Mostogradnja ING,” established in late 2020. Despite starting in the red, “Mostogradnja ING” has now reported record earnings.
According to data from the Agency for Business Registers, “Mostogradnja ING” employs 214 people and has achieved a net profit of 562,415,000 dinars, approximately 4.8 million euros, doubling its profits compared to the previous year. In contrast, the original “Mostogradnja” filed for bankruptcy in August 2021 and now operates with only two employees, facing a significant loss.
The strategic partnership between the struggling “Mostogradnja” and “Mostogradnja ING” was formalized in 2021, according to workers’ accounts. This agreement reportedly involved employees transitioning to “Mostogradnja ING” after a social program, facilitated by the Ministry of Economy. The “Millennium Team” was said to have leased space from the original company, eventually taking over its assets, including machinery and property.
The “Millennium Team” has longstanding ties to the Serbian government and the ruling Serbian Progressive Party (SNS), which many speculate played a role in the strategic partnership. Workers from the original “Mostogradnja” have voiced concerns about the deliberate deterioration of the state-owned company, suggesting it was orchestrated to facilitate its eventual acquisition by politically connected private entities.
As “Mostogradnja” remains in bankruptcy, its fate hangs in the balance, with the possibility of privatization looming.
