Truck and bus maker Jelcz to be split into four parts

The management of automotive firm ZS Jelcz announced plans to split the company into four separate entities, as well as to continue the restructuring program, which could mean laying off up to 20% of the 1650-strong work-force. Under the plan, Jelcz would be divided into spin-offs producing trucks, buses, car parts plus a research and development firm. The company also considers selling off up to two-thirds of its assets. The reason for taking such far-reaching steps was the severe competition from foreign producers, which pushed the company into financial trouble. In 1998 Jelcz recorded a net profit of zl.15.3 million, however, last year it plunged into the red with a zl.56 million loss. According to Jelcz president Krzysztof Rozenberg, this year Jelcz should show a profit. Rozenberg also said that the company is awaiting a Cabinet Economic Committee (KERM) decision on its motion to enlarge the Walbrzych Special Economic Zone so as to include a part of Jelcz in it. The company is also looking to expand its production by new types of buses, including gas-powered ones. (Puls Biznesu, p.7) M.K.