Polish Business Survey
EUR77m on rebuilding paper mill
One of PolandŐs largest paper producers, Frantschach from Świecie to the north of Bydgoszcz is to spend EUR77m on rebuilding its production facilities. Cost of this investment up to the end of next year is almost EUR77m. These funds will come from the companyŐs own resources and a long term loan.
Attempt to block share issue
Some shareholders from the Pepees brewery in Łomża are attempting to block an attempted share issue proposed by management. So far the attempts have been unsuccessful and it is believed that at the next shareholders meeting the new issue could be confirmed.
On-line aluminium
Sapa Aluminium has announced that it is to start an internet sales system in two weeks time. Next year on-line turnover will be around PLN35m if company estimates are correct.
Żywiec reduces capacity
Beer producer Żywiec has announced that it is to close its breweries inGdańsk and Lancut. In this way production capacity will be reduced by more than 100m litres annually. It would seem that the laying off of 300 people will cost Heineken, the Dutch owner of the company, around PLN20m in golden handshakes.
No lease of life for leasing
For the last couple of months banks have been very careful about renewing leasing contracts. Some of them having even stopped financing leasing operations altogether. Analysts think that of the current 200 leasing companies as many as 90 percent could go out of business within the next two to three years.
Materne plans major investments
Materne Polska, the Polish subsidiary of the French Materne will be investing around USD50m in this country. Part of this will be the construction of new refrigeration units which will cost almost PLN14m and will come on line in the middle of next year.
Production of frozen fruit is around 70 percent of the companyŐs turnover. Ninety percent of them are exported to western Europe although management believes that the internal market could be a lot larger.
The company is also planning on investing in jam production as well.
Chemiskór plans share issue
Today shareholders at Chemiskór will make a decision on increasing the companyŐs capital. It is proposed to increase it and issue new seven million series E shares with a nominal value of PLN1 each. Funds raised will be used for investments.