The other part of the new, substitute horizontal furnace facility began operating.


One part of the new, substitute horizontal furnace facility began operating.


The Directorate for Privatization sold the state capital to the factory’s management: Novo Škrebić, Dušan Škrebić, Radivoje Vuković, Duško Markočević and Smilja Lukić.


The first meeting of shareholders took place.


Due to physical deterioration, the almost impossible usage of horizontal furnaces, high production costs and ecology matters, the construction of substitute horizontal furnaces of the same capacity began in 1991.

The war interrupted and froze all activities concerning this investment. 70% of the work had already been done, and 5 million DEM had been  invested in the project. All funds had been provided without loans or any other arrangements.


A facility for phthalic anhydride production was built, but it never managed to operate profitably. It ceased to operate at the beginning of the war in the former Yugoslavia. It was restarted for a short period of time in 2002.


The facility for briquetting charcoal dust was put into motion.


A vertical retort was built.


The supplies of production resources after the end of World War II were very poor. Production facilities, as well as other machinery had already exceeded their expiration date and were in an extremely bad condition.

Bearing all this in mind, significant resources were being invested during this period with the aim of making production facilities reliable and safe again.


In the summer of 1944, the factory was severely damaged due to the bombing. Thereafter, it was not possible to pursue the production.

From September 16, 1944 to May 1, 1946 the emphasis was on the reconstruction of the ruined factory.


The influence of the economic crisis that was present in this period was manifested through the factory’s affairs and management. The export of final products was significantly decreased, while the production capacity had been reduced due to the large inventories of finished goods.


The Joint stock company in London soon entered into liquidation which brought all the stocks of The English-Yugoslav distillation of wood back into possession of the First Croatian Savings Bank in Zagreb. From 1933 the factory regains its former name “Yugoslav Distillation of wood” Inc.

1928. godina

With the aid of a Viennese scientist, professor Suida, the factory was able to produce a much cheaper, concentrated acetic acid obtained from raw wood starch.


The first Yugoslav joint stock company, entitled Destilacija drva Inc. had entered into liquidation. Its shares had been taken over by the First Croatian Savings Bank in Zagreb. The bank managed to get attention of the English capital to invest in the factory. The English accepted the conditions of the factory owners, and  Chemical and Wood Industry Limited – London was established. The English-Yugoslav distillation of wood was adopted as the new identification name of the factory.


Based on the Treaty, in May 1920, the factory was leased over for three years to the “First Yugoslav joint-stock company for forest industry” in Zagreb. The aforementioned company had established a special joint-stock company for the purpose of factory management, entitled “Destilacija drva“.


During the First World War, Destilacija became a war factory, and an officer carried out a commissary’s duty. The most produced product during this period was acetone.

When the war ended, in accordance with the Treaty of Versailles, the factory became the property of the newly formed “ Kingdom of Serbs, Croats and Slovenes“.


The repeated fire outbreaks that hit the factory in the period between 1910 and 1912 had seriously jeopardized its work and some of the manufacturing installations had been completely ruined. The owners of the factory approached the reconstruction by building new facilities and introducing modern technology. The production of potassium acetate as an important raw material for the production of acetone had begun in this period, which was considered to be a technological innovation in this field. The selection of finished products was expanded. Besides charcoal and raw vinegar, the factory now produced methyl alcohol, acetone, tar, methanol and acetic acid while timber, cut planks, railway thresholds, telephone poles and many others were produced in a steam sawmill.


When the company that founded and managed the factory declined, the former joint Ministry of Finance in Vienna issued the warrant for the government of Bosnia and Herzegovina based on which the Provincial Government, using the concession from  May 16th 1902, and the deforestation agreement from June 24th 1902, handed over the management of the factory to the  “Holzverkohlungus – Industrie AG” – HIAG from Konstanz which holds in its possession a lot of similar factories across Europe and America.

This association, with the right of cutting state forests in the river basins of Velika and Mala Usora and Velika and Mala Ukrina, and wood processing to get chemical products and sawn timber, established a special joint-stock company “Bosnische Holzververtungus AG” named “Bosnian joint-stock company for wood exploitation in Teslić” whose main purpose was the management of the factory.


The directorate (administration) building  was built.


The chemical industry “Destilacija” Teslić was founded by the company “Kesseller Trubertroknugs A.G.” from Kasel that had built the factory and set in motion the installation for the carbonization of wood with dry distillation.

The basic product at the time was charcoal, which was used in the blacksmithing and metallurgical industry. The by-products were raw vinegar, crude tar and methanol, all of which were transported for final processing to Austria.