Polish Business Survey
DIY cash creates own net
Sopot based credit agency Best has opened its own network of direct sales representatives. The network now has 100 agents and thanks to an agreement with DIY chain Obi it now has sales points in each of these stores throughout the country.
Fruit juice bond issue
Recent market research has indicated that Hortex is losing the position it has held for many years as the leader in the fruit juice market. In a few weeks time Hortex intends to issue bonds for a total value of PLN200m, it closed its last financial year with a PLN170m loss.
Kety to build new factory
The light metals manufacturer Kety has announced that it is to build a production hall in the Tychy section of the Katowice special economic zone.
This PLN100m investment will see the switching of aluminium profiles to the new factory. Production will commence towards the end of this year and industrial scale production in the first quarter of 2001. The investment has been financed in half from the company s own resources. It has seen its export market grow this year by 150 percent when compared to 1999, ninety percent of this is to Germany. Exports this year are expected to be twenty percent of sales.
Lada to assemble in Poland
Lada Polska has announced that in November it is to commence assembly operations alongside the KIA and Hyundai plant for delivery vehicles whilst a new assembly plant is being built. This plant should be opened in March, at present Lada is looking for suitable land to site it on. The value of the investment is PLN50m.
It is rumoured that Lada wanted to buy the Ford plant at Płońsk which Ford stopped using last July. However it would seem that Lada was unwilling to pay the USD22m that Ford wanted. Ford discontinued assembly operations because of the lowering of tariffs made it uneconomic, however it is still considered worthwhile for non EU companies to assemble here.
Lafarge to build new factory
The French Lafarge Nida Gips has announced that it is to invest almost PLN225 in a new factory which should start production in the beginning of 2002. The consortium of Lafarge-Atlas recently bought the Dolina Nida works which gave it 300 distribution points in Poland.
Seeking new furniture
Following its recent acquisition of a majority share in the Bialfam furniture factory, Swarzędz-Meble has announced that it is to see further companies such as the Gostyń furniture factory in which it already has a 8.5 percent stake.
There is a chance of saving the Majewski wooden products company and its subsidiary window and door manufacturer Eko-Drewno. Their bankruptcy was declared in a Suwałki court in August with PLN20m worth of debts to the energy companies and suppliers as well as the tax and social security offices.
There is however a chance of saving the business thanks to an agreement that was signed in July before the bankruptcy was declared with CDM distribution company. This company has said that the doors and windows are selling very well and the aim of rescuing the company is to save trade marks that are well known on the market. One of the owners of CDM, Jarosław Olszyński, said that there is a chance of finding a financial backer that would allow his company to buy the production facilities and save around 100 jobs.