All in the Fam-ily

The financial support gained by Fam Foundry Technology (Fam TO), the dominant company of Fam Capital Group, from its E-series share issue in Q1 this year, has enabled the company to make two significant investments. It covered the whole of the zł.8-million purchase of three machines for magnesium casting, and financed half of the zł.26 million in construction costs for a new zinc plant (the rest was covered by a loan). So far, two of the casting machines are already in use and by the end of June the third will start operating. As for the zinc plant, it is under construction in the Special Economic Zone in Rawa Mazowiecka and is due to start operating between Q3 and Q4 this year.

"The plant will enable us to extend the most profitable branch of the group's activity," the president of Fam's management board, Piotr Janczewski told WBJ, stressing the role of the location in the SEZ.

"The location will allow us to target new markets in Poland, especially since competition in the area is practically non-existent," he said. Janczewski also stressed that the plant will allow the firm to enter the market of zinc-treating large-scale steel products.

The two investments are beneficial for the company, says Paweł Rejczak, a stock-exchange expert from Bankier.pl, especially as the demand for their products will be further driven by the boom in the construction industry. Rejczak notes that the group's plans to float one of their companies - Stradom, which operates in technical textiles - on the bourse, as well as recent changes in the group's organizational structure, will make Fam even more attractive to investors.

Fam Capital Group's 2006 EBITDA of zł.12.2 million is expected to grow to zł.18.4 million in 2007 and zł.22.7 million in 2008.