Chemical plant getting worse

Alan Heath
14-02-2002, 00:00

The financial state of the Kędzierzyn heavy chemicals works went through a change for the worse last year as it announced a PLN75m loss compared to a PLN33m profit in 2000.

There are several reasons for this failure. The first is the increases in the price of gas last March. Last year alone it lost PLN40m whilst the high cost of PLN did not permit the plant to make up these extra costs with increased export revenues. In view of the difficulties of the overseas market, Kedzierzyn decided to limit exports from 53 percent to around forty percent of production. When it became easier to sell abroad the plant once again sought export markets. Jerzy Majchrzak, MD of the plant believes that results will improve in the first half of the year but the company will still be in the red. The effects of the cost cutting programme will not be visible until the end of this year.

The plant will be aided by a decision by gas concern PGNiG and confirmed by the energy watchdog URE to introduce new tarriffs which give large users a five percent discount. This could be the first step in turning around the ailing chemical sector. Nonetheless the plant is still going to have to find PLN32m to pay an installment on its debt before the end of June. The company will also attempt again to sell its carbon dioxide facility. An attempt was made in the past to sell the facility to the Belgian ACB.

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Podpis: Alan Heath

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