Barlinek Gives Up Future Russian Plant To Consolidate In Romania

F.A.
English Section / 16 septembrie 2008

Polish-based wooden floor tiles manufacturer Barlinek has given up plans to build a 400 million PLN (some 121 million EUR) factory in Russia because of economic uncertainties in that country and prefers to consolidate business in Romania, Reuters reports. Barlinek, controlled by the Polish billionaire Michal Solowow, has reduced the price of a new share issuance from 4.55 PLN to 1.4 PLN and will use the funds to increase the production capacity of the factory in Romania by over 1.6 million square meters per year and to buy a computerized system. In Romania, Barlinek also controls Diana Forest - Bacau.Based on the existing analyses and our own reports, the management is convinced that this is not the time to start building the factory in Russia, which could cost some 400 million zlotych," a press release from Barlinek indicates.

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