English Section

Iconic Polish tractor manufacturer Ursus sold to Ukrainian businessman

25.10.2024 15:00
The iconic Polish tractor manufacturer Ursus, which filed for bankruptcy, has been sold to a Ukrainian entrepreneur.
Photo:
Photo:Shutterstock/meowKa

The company, along with its factories, documentation, and other assets, was purchased for PLN 74 million (EUR 17 million) in the third attempt to find a buyer, according to private broadcaster Radio Zet.

After two unsuccessful attempts, Ursus was finally sold during a third auction. Initially, a restructuring firm tried to sell the company for PLN 125 million, then lowered the price to PLN 99 million, before ultimately securing a deal at PLN 74 million. The sale included the brand name, three factories located in Lublin, Dobre Miasto, and Biedaszki Małe, as well as the accompanying documentation, materials, and machine rights, as reported by farmer.pl.

The new owner is M.I. Crow sp. z o.o., a company established in Warsaw just a few months ago, owned by a businessman from Kyiv. He has assured there will be no layoffs, and the company’s main focus will remain on producing transportation equipment, with additional activities including metal goods manufacturing, retail trade, and transport support services.

History and future of Ursus

Founded in 1893, Ursus initially operated under the name "Przemysłowe Towarzystwo Udziałowe" and produced industrial fittings. Over the years, the company evolved, moving into the production of various engines and later changing its name to Zakłady Mechaniczne URSUS S.A. in 1923. Throughout its history, Ursus manufactured trucks, buses, military vehicles, and eventually began producing tractors after World War II, with the first one rolling off the assembly line in 1947. The company grew to become one of Poland's largest enterprises during the communist era, known for its diverse range of tractors.

However, capitalism brought new challenges. By 1990, Ursus faced a difficult reality—new taxes, the end of state subsidies, and old debts combined with falling demand for tractors led to financial difficulties. As recounted by bankier.pl, Ursus began selling off assets and attempted multiple restructuring efforts. Although the company seemed to find success in international markets for a time, financial losses re-emerged in 2017, and by 2019, a court had seized its accounts. In 2021, Ursus was officially declared bankrupt.

Now, with the acquisition by a new owner, Ursus’ future remains uncertain. The new management aims to develop a fresh strategy for the brand, which may include hiring new specialists and boosting production capacity, according to Tygodnik Rolniczy.

(jh)

Source: Radio Zet