Centrozap has registered a new firm called CentroWodKom in the Komi Republic, a central area in the Russian Federation. The region's authorities have given the capital group a 49-year lease for 600 ha of forest land on which a wood-processing plant, implementation of a logging system, construction of road and other infrastructure and construction of a processing complex will be installed.
"The investment in Komi will allow us to simultaneously draw on all of our strengths: investment organization, exploitation and processing of raw natural materials, and international trade," said Ireneusz Król, president of Centrozap's management board.
The cost of the investment is estimated at zł.294 million. Upon completion of the investment, the firm expects annual sales to amount to zł.667 million and net profit to zł.119 million.
Centrozap expects to relist on the bourse at the end of this month. Its issue prospectus was approved by the Polish Financial Supervision Authority on March 31.
The firm transformed into a joint-stock company in 1997 and originally listed on the WSE in 1999. It withdrew from the bourse in 2003 because of debts related to VAT and other financial issues. Centrozap came to an agreement with creditors in 2005 as part of its restructuring program and emerged from bankruptcy the following year.
In H1, Centrozap earned zł.8.5 million in sales revenues and recorded an operational loss of zł.189,000.
