Mostostal Export gets tough on developers - no money, no construction

Mostostal Export, one of the country's biggest construction companies, has a new strategy to survive the current crisis on the construction market. One of the main elements in the announced strategy is to stop developing projects unless Mostostal has serious investor with funds. " At the moment we are not going to start any projects for developers. Those kinds of investment are only possible with the sort of financial support we are now intensively seeking," explained Michal Skipietrow, chairman of the company. The next element of the strategy is to strengthen the company's exports and undertake projects from the environmental and infrastructure sector. Last year income from such work topped zl. 185 million but yielded only a zl. 700,000 net profit. In the coming years, according to Mostostal, exports should increase. However, in common with the strategy of other major construction players facing hard times, Mostostal is to reduce its staffing levels. Last year employment was reduced by 2,000 with a further 600 losing their jobs in the first six months of this year and another 300 to be dismissed soon. As a further cost-cutting measure, Mostostal is also selling off those assets not directly related to its core activities. (Puls Biznesu, pp. 1, 6) A.L.