Srubex screw producer may get new investors next year

Warsaw (Puls Biznesu) – Srubex, one of the largest screw producers in Central and Eastern Europe , may soon be bought by a new investor. Since its IPO in February, the company has been controlled by financial investors, including NFI and pension and investment funds. “Foreign branch investors are interested in our company”, Wojciech Fedko, Srubex CEO said. He refused to enumerate the names of potential buyers.

Due to falling steel prices, Srubex clients failed to buy the screws, and the company had to revise its forecasts down from PLN 11.5m to PLN 5.2m (EUR 1.3m) of net income this year. Srubex is restructuring (it will have PLN 4m of savings due to job cuts) and invests in new products. Its European market share is growing from 1.5 percent to 2 percent. “Our strong market position lures investors”, the CEO believed. He added that not every investor would be welcome. “An acquisition just to take over our market share would not be good. We need an investor who would use our potentials and support us with know-how”, the CEO said.

Srubex shares have fallen 40 percent in the recent months to PLN 32-33.

(PLN 1 = EUR 0.257)Poland/Enterprises/Metals and Mining