EKKW gets back on track with new investments, restructuring program

Management hopes to renew contacts with former cooperating companies that were customers to the plant before it's financial problems started. "We have received confirmation of interest from Swiss, German and Belgian companies. We will soon begin negotiations. The current contracts include mainly servicing of wagons for PKP Cargo and insignificant production of new cars. We want to reestablish the production in new segments, such as cars for wood transportation," declared Marek Wołoch, the investor's chairman of the supervisory board. Wołoch said large investments are inevitable, but he also plans to introduce a significant cost cutting program. "Within a period of one year we plan to lower fixed costs by 12-15%. We are analyzing each bit of the company's properties, estimating their potential to generate revenues. We have taken over almost 1,300 employees. We plan to invest a sum of zł.14 million annually starting in 2006," added Wołoch. (Puls Biznesu, pp. 1, 4) A.K.