Arctic Paper Kostrzyn to invest in production

Last year Arctic Paper Kostrzyn (formerly Kostrzyn Paper) recorded net profits of zl. 35 million - zl. 7.4 million less than in 2001 - on estimated revenues of zl. 580 million, 2.5% more than the year before. The money is slated for investments in production aimed at decreasing consumption of water and electricity. According to the new president of the company, Michal Jarczynski, the main reason for the weaker net result was an increased financial burden, namely, "raising a deposit for starch imports to 50% of the transaction value." The market situation is worsening as many customers have gone bankrupt, most have problems with financial liquidity and there is still no sign of recovery in the advertising market. Almost 70% of Kostrzyn' s output is exported to Germany, France, Great Britain and the Middle East. (Rzeczpospolita, p. B4) M.M.