Polish Business Survey
Time short for bankrupt steel
This autumn the consolidation of the Polish iron and steel industry should start. Edward Nowak, the treasury minister responsible for privatisating the sector claims in an interview in today s Puls Biznesu that this could save the steel industry.
The original concept of the formation of a company to be called Polski Stal (Polish Steel) was made in 1995 although it was subsequently dropped. The plan would involve the initial amalgamation of the Katowice and Sendzimir works with the possible addition of the Częstochowa mill as well. This union would be made on technological grounds although the minister says that in theory he is not in favour of creating monopolies.
Edward Nowak admits that time is short in an industry that is writing up huge debts every day.
Brewery upgrades
Lublin based Perla brewery has announced that it is to spend PLN20m on upgrading its plant. The brewery will be able to manufacture 80m litres annually following this investment. Funds are to come from its own resources and credits. The brewery in this way will be able to profit from the ever growing popularity of beer in this record breaking year for the beverage.
Railways and vodka
Warsaw based consulting firm Pro-Invest has been chosen to work out a plan to reform the railway infrastructure which should lead eventually to the restructuring of the loss making national carrier PKP.
Pro-Invest is also currently working on a plan to privatise the Polmos companies.
Furniture acquisition
This week Swarzędz-Meble will purchase a majority holding in the Bialfam furniture factory. Swarzędz has currently almost 25 percent of the shares of Bialfam which it bought from the Jupiter National Investment Fund. Several days ago the company was granted permission from the monopolies and mergers commission UOKiK for the purchase of a further 32 percent of the furniture manufacturer.
Tarnów plant invests
The chemical plant at Tarnów-Mościce has announced that it will be investing PLN4m in a new PVC production line. If sales go well the plant says that production will be further increased. The chemical industry is soon to be privatised although Tarnów is going ahead with investments and not waiting for a financial backer.
Pension fund caught out
The pension fund watchdog UNFE has announced that it will be fining Commercial Union retirement fund for the eighth time. This time the fine is for a deal which lost the fund PLN1m. UNFE has so far given 28 fines for a total value of PLN3.4m.
Buyers for debt ridden coke
It has been announced that a German and a Czech company are interested in the purchase of Tarpol and Poltar from south west Poland, companies belonging to the Blachownia Holding which produces coke by products. Whereas the company is heavily in debt, the size of cash owing has been reduced by one quarter recently. The financial problems of the group frightened off the American ICF Kaiser Coke Chemicals who had earlier been interested in the group.
Credit needed for credit agency
Dominet, a credit agency from Piaseczno near Warsaw is seeking a strategic investor which it believes it will find before the end of the year. Dominet is the sixth largest agency in Poland and the second largest in auto-credit market. It is the only large credit agency not to have a financial backer.
More French stores soon
The French retail group Les Mosquetaires is hoping to open ten IntermarchŽ supermarkets in Poland before the end of this year. It is also claiming that it will open a logistics centre in Wielkopolska and may introduce its new network into this country.
There are currenty thirty IntermarchŽ supermarkets in Poland and this year two new stores were opened. As well as food, the company has its own DIY brand called BricomarchŽ and four such stores will be gracing the Polish countryside. Like other retailers, the company is seeking expansion. Each new store is costing around USD1m to open.
The construction of the logistics centre will be made around the current 21,000sqm centre at Koziegłowy just outside of Poznań. This centre will now double in size.