The turnover generated by the paper manufacturer Vrancart Adjud amounted to nearly 11 million euros for the first nine months of the year, while gross profits reached around 1.5 million euros. The company's indicators saw a 10% growth on last year, announced Mihai Botez, Vrancart's general manager.
He believes the 10% growth on last year's results will continue to the end of 2004, meaning that Vrancart's turnover could reach 15 million euros.
Vrancart will implement an investment plan of more than 3 million euros for the retooling and upgrading of its assembly lines, following floatation on the Bucharest Stock Exchange.
Vrancart is currently a closed company, but will put out a primary public offering for a listing on the Bucharest Stock Exchange.
"We will put out a 80 million share issue at a par value of 1,000 ROL, plus an issue premium of 500 ROL," explained Botez. The money derived from this, some 3 million euros, would be used for an investment scheduled to begin next year, Botez added.
Vrancart has invested some 2.5 million euros in the upgrading of old equipment and around 1 million euros in environmental protection measures. "Our activity is closely connected to the performance of other industries, such as the food industry, but their growth barely shows in our results," Botez said.
Vrancart Adjud is one of the leading paper and cardboard producers in Romania. According to its own estimates, it is the leader on the toilet paper market, where it enjoys a 38% market share, and is one of the top producers of corrugated cardboard with an estimated market share of 15-20%. It also makes floating paper, which it uses solely for its manufacturing process.
Its majority shareholder, SIF Banat-Crisana, was forced by the old capital market legislation to delist Vrancart from the RASDAQ because it owned more than 90% in the company. Vrancart's listing on the Bucharest Stock Exchange will make it easier for SIF Banat-Crisana to exit the company through a possible sale to a strategic investor. Its main competitors are Dunapack Sfantu-Gheorghe, Romcarton Bucharest and Ambro Suceava.
alexandru.cerchez@zf.ro
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