Daewoo puts a figure to restructuring
Daewoo-FSO hopes to save at least zl. 150 million ($33 million) through the restructuring of its Polish operations, said Zofia Duran, the financial director of Daewoo-FSO, last week.
The carmaker has been preparing a restructuring plan since the end of October, prompted by the bankruptcy of its Korean parent company and the steady weakening of the Polish car market. Details of the plan will be announced in January, said Krystyna Danilczyk, the press spokeswoman for Daewoo-FSO.
Apart from the zeran factory, Daewoo-FSO has 16 joint-venture companies and seven spin-offs, all of which were separated from the zeran factory and its assets when Daewoo bought the state-owned car manufacturer FSO in 1995. If one of its companies doesn't start generating a profit, it will either be sold to an investor or merged with another entity, Duran said.
According to an article in last Wednesday's Puls Biznesu, Daewoo-FSO is planning to close down Warsaw-based Spicer, Dongwon in Kozuchow and the Wyszkow-based JC Corp. ZSM, and move the production from these joint-venture companies to other plants.
The decision has essentially been made to transfer Spicer's production to Wyszkow, said Janusz Lach, adviser to Daewoo-FSO's president. He added that Spicer's land and building will be sold, while the fate of the Kozuchow and Wyszkow-based companies hasn't yet been decided. Lech also said that the Grojec and Elk plants may be sold to investors.
No less than 30% of the spun-off companies will share the fate of either Spicer or Grojec, said Duran, who wouldn't provide any details.
