New shares issue will put floor producer Barlinek on firm footing

The wooden floor producer Barlinek holds its shareholders meeting in a fortnight when discussion will focus on raising the company's capital by zł.30 million to zł.80 million. To do that, Barlinek plans to issue 30 million shares which would be be taken over by the company's main shareholder, Michał Sołowow, who owns 99.7% of its stock. "This increase in the value of our capital will serve, just like previous ones, to finance investments allowing us to increase the company's production capacities," said Barlinek's president Paweł Wrona. New investments in two lumber-mills will cost the company an additional zł.50 million. Earlier this year Barlinek launched a new floor factory that cost around zł.100 million. According to Wrona, the company is considering setting up another floor factory for zł.60 million in 2006, but the decision has not been made yet. Barlinek is increasing its production capacities due to an increase in exports. In 2003 exports earned about 50% of the company's income, this year it is planned to exceed 60% and the company's target for the future is 75%. In 2003 Barlinek's income rose by 39% and their net profit rose by 89% compared to 2002. (Puls Biznesu, p. 7) D.W.