Warsaw (Puls Biznesu) – Centrostal Gdansk, the distributor of steel products, is going to receive PLN 6.3m (EUR 1.5m) for Przedsiebiorstwo Budowlane Kokoszki construction company. “We expect the first instalment at the end of the year”, Zbigniew Canowiecki, Centrostal Gdansk CEO said. Centrostal had PLN 0.7m of net income last year. “All the funds received from the transaction will be spend to pay back credits”, the CEO promised.
Centrostal longs for cash because the situation in the sector is difficult. “Steel products’ prices keep falling. For example, I’m selling flat steel PLN 2 a kilogram, although I paid for it PLN 2.5 at the beginning of the year”, the CEO explained. In the second quarter of this year, Centrostal had PLN 0.4m of net income but it was only thanks to selling assets. It had operational loss. “I will be pleased if we manage to end this year at break-even”, the CEO said.
(PLN 1 = EUR 0.246)