ZTK invests heavily in modernization, may enter biofuels

Although edible oil producer Zaklady Tluszczowe Kruszwica (ZTK) has signed agreements to borrow zl. 375 million from banks, the company denies that it is in a crisis. They claim that zl. 300 million is to be used as bridging loans to purchase this year's rape crop, and the remaining zl. 75 million will finance ZTK's current activity. Analysts suggest that Kruszwica is likely to start the production of biofuels and the company does not exclude such a possibility sometime in the near future. In the first half of 2002 ZTK generated a zl. 2.4 million profit on sales of zl. 288.5 million. "The result seen against our restructuring activities and modernizing our p roduction line are satisfactory," said ZTK marketing manager Rafal Wad lewski. So far the enterprise has invested $30 million on upgrading pr oduction and restructuring, and this year plans to spend another $15 million completing various projects. (Prawo i Gospodarka, p. 5) A.Z.