Strong fiber

Hardex, a Krosno Odrzańskie-based fiberboard producer, has put forward its issue prospectus with the aim of debuting on the Warsaw Stock Exchange by the end of this year. The funds acquired will help diversify the company's product portfolio and streamline production costs. The company is also looking for takeover opportunities in the sector.

Hardex targets furniture producers, as well as the construction, auto and packaging industries. About 60 percent of its 80 tonnes of annual production goes abroad, mainly to the EU countries.

The boom in the construction industry has given the company a lift. According to Artur Zakrzewski, an analyst with Fortis Private Investments Polska, for the next year or two the favorable situation in the construction market will not change.

"Even though the supply of fiberboard in this industry has increased significantly, the high demand in the construction market will consume it," he told WBJ. Still, in the furniture-production market, where it takes longer to earn revenue, the company should be careful to remain competitive when raising process, he added.

In H1 2007 the company posted revenues of zł.58 million and a net profit of over zł.4.6 million, while last year brought Hardex revenues of zł.100 million and a net profit of zł.6.5 million. Its main shareholder is BBI Capital investment fund, which holds a 59.4 percent stake.