Chemicals: Police's acquisition plans

The president of state-owned chemical company Police has revealed that his firm is interested in making several acquisitions in the near future and has plenty of money to spend. Ryszard Siwiec, the president of the company, stated that the firm could spend "half of its capitalization on the WSE" on acquisitions, meaning the figure Police is willing to spend on acquisitions amounts to some zł.500 million.

The strategy does not envision Police taking over competitors, but instead buying up suppliers in order to cut costs.

"We want to consolidate on the basis of the supply chain, as this provides greater financial stability in the long run," Siwiec told Parkiet daily.

He added that Police was already analyzing some companies as acquisition targets.

As Poland's largest maker of phosphate fertilizer, Police is considering cooperating on a joint-venture basis with an African producer of phosphorites, as well as with a transport firm from Africa. It is hoped that this will assure the long-term supply of resources cheaper than at market prices.

Other plans foresee the development of a seaport belonging to the company, in order to improve the dispatch and delivery of goods.

"Thanks to this port we can become a significant player on the logistics market," Siwiec commented. To support the port, Police wants to purchase a transport company which has its own fleet and customer base. The firm also is considering expanding its activity into the import-export business.

Police has expressed interest in acquiring Polish raw-materials suppliers. "We use a lot of coal and sulphur, and these raw materials are also produced in Poland," said Siwiec.

It is unknown when the first acquisitions will be completed. Siwiec said, however, "I will be happy if the acquisition process is initiated this year."