Tele-Fonika Kable to consolidate and then expand

Tele-Fonika Kable (TFK) has an ambitious zl. 100 million expansion plan to launch production in Ukraine as well as to expand its plant in Bydgoszcz. The necessary capital will be raised through bank loans and possibly from a financial investor. "Creditors are receiving our business plans along with guarantees that the investment will pay off", said Jan Wielunski, TFK president. First TFK has to merge with Tele-Fonika KFK. According to Wielunski to achieve this it is necessary to withdraw TFK shares from the Warsaw Stock Exchange. The issue is being discussed by the Securities and Stock Exchange Commission (KPWiG) and a final decision should be made in October. "By investing in the production of cables we hope to increase our share of the Polish market, despite the fact that the telecommunication cables market is currently in a crisis," said Wielunski. Expanding the Bydgoszcz plant will cost zl. 21 million, but implementing the whole development plan will cost another zl. 80 million. (Puls Biznesu, p. 6) A.Z.