Break-up signals latest attempt by auto-maker Jelcz to attract investor

In its latest bid to find an investor, debt-ridden car-maker ZS Jelcz has launched a major restructuring under which it will be divided into three new entities. They are a truck producing subsidiary Jelcz Samochody Ciezarowe, a car parts subsidiary Jelcz Komponenty, and a parent company Jelcz SA, which will manage the holding and produce buses. "We hope that after the establishment of the subsidiaries it will be easier to find an investor. Within two to three months we will invite potential investors to talks on cooperation," said Franciszek Gaik, president of the Zasada group, owner of Jelcz. Gaik went on to explain that the company's new structure will enable it to lower costs by around 20% and improve profitability. According to the company plans, in the first phase of the restructuring the new subsidiaries will take over from Jelcz its permanent fixed assets, under a leasing arrangement. (Puls Biznesu, p. 4) P.J.