Stocznia Gdynia shipyard may have income without subsidies

APA - Austria Presse Agentur
14-06-2005, 19:31

Warsaw (Puls Biznesu) – On June 6th, the deadline for restructuring process in Stocznia Gdynia (SG) shipyard ended. This means, every creditor may now file a bankruptcy of SG. The shipyard’s management do not seem concerned. ‘The suit must enumerate reasons like denial to pay, which is not the case’, Jerzy Lewandowski, SG CEO explained.

Warsaw (Puls Biznesu) – On June 6th, the deadline for restructuring process in Stocznia Gdynia (SG) shipyard ended. This means, every creditor may now file a bankruptcy of SG. The shipyard’s management do not seem concerned. ‘The suit must enumerate reasons like denial to pay, which is not the case’, Jerzy Lewandowski, SG CEO explained.

SG has prepared a report describing its restructuring programme. ‘At the exchange rate of PLN/USD at 3.20 and USD/EUR 1.30 and the price of steel at USD 800 (EUR 659.3) a tonne, and prices of ships at present levels, the shipyard could be profitable without subsidies’, the report reads. ‘So much in theory. Profitability depends on too many factors. We cannot forecast them in the longer term’, Jerzy Lewandowski said. Therefore, the shipyard is not going to give up subsidies. ‘They are used all over the world. Why should we give it up?, the CEO added.

Another problem is that SG had signed contracts, which turn out to be unprofitable today. ‘Container prices reach USD 54m, while two years ago this was USD 32m’, the report added. During the restructuring process, SG renegotiated contracts worth USD 200m. ‘This shipyard received much funds from the government. They were aimed at allowing the company to reach profitability, which has not been achieved yet. Therefore, it is strange that the management are so optimistic to say that income will be reached this year’, Elzbieta Modzelewska-Wachal, expert from Centrum Prawa Konkurencji lawyers’ office commented.

(USD 1 = EUR 0.824)

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Podpis: APA - Austria Presse Agentur

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Puls Inwestora / Stocznia Gdynia shipyard may have income without subsidies