Pfleiderer Grajewo looks to WSE to finance expansion in Russia

Pfleiderer Grajewo, a leading chipboard manufacturer, announced plans to build a production plant in Russia using funds raised on the Warsaw Stock Exchange (WSE). The new facility, which will produce boards used to make furniture, will be built between 2004 and 2005 at an estimated cost of EUR 60 million. The plant will become a leading producer on the Russian market, which already accounts for around 35% of Grajewo's revenues. Company representatives are considering a public share issue next year, which would help raise a large part of funds needed for the investment. This would mean a change in the strategy of the largest owner of Grajewo, Germany's Pfleiderer Holzwerkstoffe, as it was earlier planning to withdraw from the Warsaw Stock Exchange. The company has also presented its financial forecast for 2003. Revenues are estimated to reach zł. 545 million, the EBITDA rate will amount to zł. 110 million, while net profits are estimated at zł. 57 million. (Parkiet, p. 5) A.K.