Engine maker FSO-HCP to profit from shipping boom

Ship-engine producer Fabryka Silnikow Okretowych (FSO) owned by Hipolit Cegielski Poznan (HCP) will increase its sales this year from zl.281 million to zl.539 million, thus achieving maximum production output for the next two years. The company's sunny outlook results from the worldwide boom in ship building and its increased demand for engines. According to a Puls Biznesu survey, the upbeat trend will last until at least 2003. Later, the demand for ships will most probably decrease to pre-2000 levels, only to rebound and increase at an average 10% a year until 2010. "The fluctuation is caused by ship companies, mostly German and Korean, modernizing their fleets," said Konrad Heppel, marketing and sales head for FSO HCP. For the first time in two years, FSO HCP will export two ship engines worth zl.60 million, but the rest of the already contracted consignments will go to Polish shipyards for installation in foreign ships. Recently, the company has begun producing bigger engines (800 mm piston) due to market demands. Yet it is unable to produce even bigger machines not only because of limited production capacity but also because of transport difficulties. (Puls Biznesu, p.13) J.K.