Development to lay foundation for Budimex's growth

Michałowski said that Budimex's portfolio of orders is not increasing as fast as it used to, mostly due to very strong competition on the market, which is forcing companies to give up their margins. Therefore, the company wants to concentrate on development activity, which according to Michałowski and many market analysts, will be a dynamic sector in coming years. The company's subsidiary, Budimex Nieruchomości, a property developer, posted revenues of zł.90 million in 2004 and is to increase the figure to zł.150 million in 2005. Budimex also established a new company called Budimex Nieruchomości Inwestycje with the Spanish Ferrovial, whose equity is to amount to zł.200 million within a year and intends to become one of the three largest housing developers in Poland within two or three years. Michałowski also revealed that Budimex plans to take over a large company specializing in railway construction, but refused to give any details. (Parkiet, p. 1) E.B